,,ii  #aac? ,,congress  #a/ ,session    
,s4 #abhe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aa1 #bjac ,ms4  
,baldw9 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,small ,bus9ess & ,entrepr5eur%ip  ,a   
,,bill  ,to am5d ! ,small ,bus9ess      
,inve/m5t ,act ( #aieh to enhance !     
,small ,bus9ess ,inve/m5t ,company      
,program & provide = a small bus9ess    
e>ly-/age inve/m5t program4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,small  
,bus9ess ,innovation ,act ( #bjac4  #b4 
,program au?orization ,section #cjc7;b7 
( ! ,small ,bus9ess ,inve/m5t ,act (    
#aieh 7#ae ,u4,s4,c4 #fhc7;b77 is am5d$1
 9 ! matt] prec$+ p>agraph 7#a71 9 !    
fir/ s5t5ce1 by ins]t+ aft] issu$ by su*
 companies ! foll[+3 1 9 a total am\nt t
 does n exce$ #d1jjj1jjj1jjj ea* fiscal 
ye> 7adju/$ annually to reflect         
increases 9 ! ,*a9$ ,consum] ,price     
,index = ,all ,urban ,consum]s          
7,c-,,cpi-,u71 z publi%$ by ! ,bureau ( 
,labor ,/ati/ics ( ! ,dep>tm5t (        

,labor74  #c4 ,family ( funds ,section  
#cjc7;b77#b77;,b7 ( ! ,small ,bus9ess   
,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4   
#fhc7;b77#b77;,b77 is am5d$ by /rik+    
#bbe1jjj1jjj & ins]t+ #cej1jjj1jjj4  #d4
 ,small bus9ess e>ly-/age inve/m5t      
program ,title ,,iii ( ! ,small ,bus9ess
 ,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4  
#fha et seq47 is am5d$ by add+ at ! end 
! foll[+3  ,d ,small bus9ess e>ly-/age  
inve/m5t program  #cii;,a4 ,def9itions  
,9 ?is "p3  7#a7 ,e>ly-/age small       
bus9ess ,! t]m e>ly-/age small bus9ess  
means a small bus9ess conc]n t--  7,a7  
is domicil$ 9 a ,/ate or ,indian c\ntry 
7z def9$ 9 section #aaea ( title #ah1   
,unit$ ,/ates ,code72 &  7,b7 has n     
g5]at$ gross annual sales rev5ues exce$+
 #ae1jjj1jjj 9 any ( ! mo/ rec5t #c full
 ye>s be=e ! date on :i* ! ,adm9i/rator 
makes an equity f9anc+ to a p>ticipat+  
inve/m5t company "u section #cii;,e4    
7#b7 ,eligible applicant ,! t]m eligible
 applicant means--  7,a7 an incorporat$ 
body1 limit$ liability company1 or      

limit$ p>tn]%ip organiz$ & *>t]$ or     
o!rwise exi/+ "u ,f$]al or ,/ate law = !
 purpose ( p]=m+ ! functions & conduct+ 
! activities contemplat$ "u ! program2  
or  7,b7 a manag] ( a small bus9ess     
inve/m5t company4  7#c7 ,p>ticipat+     
inve/m5t company ,! t]m p>ticipat+      
inve/m5t company means an applicant     
approv$ "u section #cii;,e to p>ticipate
 9 ! program4  7#d7 ,program ,! t]m     
program means ! e>ly-/age inve/m5t      
program e/abli%$ "u section #cii;,b4    
7#e7 ,small bus9ess conc]n ,! t]m small 
bus9ess conc]n has ! same mean+ giv5 t  
t]m 9 section #c7;a7 ( ! ,small ,bus9ess
 ,act 7#ae ,u4,s4,c4 #fcb7;a774  7#f7   
,small bus9ess conc]n 9 a t>get$ indu/ry
 ,! t]m small bus9ess conc]n 9 a t>get$ 
indu/ry means a small bus9ess conc]n t  
is engag$ prim>ily 9 rese>*+1 develop+1 
manufactur+1 produc+1 or br++ to m>ket  
goods1 products1 or s]vices 9 a t>get$  
indu/ry4  7#g7 ,t>get$ indu/ry ,! t]m   
t>get$ indu/ry means any ( ! foll[+     
bus9ess sectors3  7,a7 ,advanc$         

manufactur+4  7,b7 ,agricultural        
te*nology4  7,c7 ,biote*nology4  7,d7   
,clean en]gy te*nology4  7,e7 ,digital  
m$ia4  7,f7 ,environm5tal te*nology4    
7,g7 ,in=mation te*nology4  7,h7 ,life  
sci5ces4  7,i7 ,wat] te*nology4         
#cii;,b4 ,e/abli%m5t ( program ,!       
,adm9i/rator %all e/abli% & c>ry out an 
e>ly-/age inve/m5t program to provide   
equity f9anc+ to support e>ly-/age small
 bus9esses 9 accordance ) ?is "p4       
#cii;,c4 ,adm9i/ration ( program ,!     
,adm9i/rator1 act+ ?r\gh ! ,associate   
,adm9i/rator describ$ 9 section #bja1   
%all adm9i/] ! program4  #cii;,d4       
,applications  7a7 ,requirem5ts =       
application ,an application to          
p>ticipate 9 ! program %all include--   
7#a7 a bus9ess plan describ+ h[ !       
eligible applicant int5ds to make       
successful v5ture capital inve/m5ts 9   
e>ly-/age small bus9esses & direct      
capital to small bus9ess conc]ns 9      
t>get$ indu/ries or o!r bus9ess sectors2
  7#b7 in=mation reg>d+ ! relevant      

v5ture capital inve/m5t qualifications &
 backgr\nds ( ! individuals responsible 
= ! managem5t ( ! eligible applicant2 & 
7#c7 a description ( ! ext5t to :i* !   
eligible applicant meets ! selection    
crit]ia "u section #cii;,e4  7b7        
,applications f manag]s ( small bus9ess 
inve/m5t companies ,! ,adm9i/rator %all 
e/abli% an abbreviat$ application       
process to p>ticipate 9 ! program =     
applicants t are manag]s ( small bus9ess
 inve/m5t companies t are lic5s$ "u     
section #cja4 ,! abbreviat$ application 
process %all incorporate a presumption t
 manag]s ( small bus9ess inve/m5t       
companies t are lic5s$ "u section #cja  
satisfactorily meet ! selection crit]ia 
"u p>agraphs 7#c7 & 7#e7 ( section      
#cii;,e7b74  #cii;,e4 ,selection (      
p>ticipat+ inve/m5t companies  7a7 ,9   
g5]al ,n lat] ?an #ij days aft] ! date  
on :i* ! ,adm9i/rator receives an       
application f an eligible applicant "u  
section #cii;,d1 ! ,adm9i/rator %all    
make a det]m9ation to conditionally     

approve or disapprove ! eligible        
applicant to p>ticipate 9 ! program &   
%all transmit ! det]m9ation to !        
eligible applicant electronically & 9   
writ+4 ,a det]m9ation to conditionally  
approve an eligible applicant %all      
id5tify all conditions ! eligible       
applicant is requir$ to satisfy = !     
,adm9i/rator to provide f9al approval to
 ! eligible applicant to p>ticipate 9 ! 
program1 & %all provide a p]iod ( n less
 ?an #a ye> = ! eligible applicant to   
satisfy ! conditions4  7b7 ,selection   
crit]ia ,9 mak+ a det]m9ation "u        
subsection 7a71 ! ,adm9i/rator %all     
consid]--  7#a7 ! likelihood t !        
eligible applicant w meet ! goals       
specifi$ 9 ! bus9ess plan ( ! eligible  
applicant2  7#b7 ! likelihood t !       
inve/m5ts ( ! eligible applicant w      
create or pres]ve jobs 9 ! ,unit$       
,/ates1 bo? directly & indirectly2  7#c7
 ! "* & fitness ( ! managem5t ( !       
eligible applicant2  7#d7 ! exp]i5ce &  
backgr\nd ( ! managem5t ( ! eligible    

applicant2  7#e7 ! ext5t to :i* !       
eligible applicant w conc5trate inve/m5t
 activities on e>ly-/age small          
bus9esses2  7#f7 ! likelihood t !       
eligible applicant w a*ieve             
pr(itability2  7#g7 ! exp]i5ce ( !      
managem5t ( ! eligible applicant )      
respect to e/abli%+ a pr(itable inve/m5t
 track record2  7#h7 ! ext5t to :i* !   
eligible applicant w conc5trate inve/m5t
 activities on small bus9ess conc]ns 9  
t>get$ indu/ries2 &  7#i7 ! ext5t to :i*
 ! eligible applicant w conc5trate      
inve/m5t activities on small bus9ess    
conc]ns 9 t>get$ indu/ries t h receiv$  
funds f an ag5cy ( ! ,f$]al ,gov]nm5t1  
includ+--  7,a7 ! ,national ,in/itutes (
 ,heal?2  7,b7 ! ,national ,sci5ce      
,f\ndation2 &  7,c7 funds receiv$ "u !  
,small ,bus9ess ,innovation ,rese>*     
,program or ! ,small ,bus9ess ,te*nology
 ,transf] ,program1 z su* t]ms are def9$
 "u section #i ( ! ,small ,bus9ess ,act 
7#ae ,u4,s4,c4 #fch74  7c7 ,f9al        
approval  7#a7 ,9 g5]al ,n lat] ?an #ij 

days aft] ! date on :i* an eligible     
applicant satisfies ! conditions        
id5tifi$ by ! ,adm9i/rator "u subsection
 7a71 ! ,adm9i/rator %all provide f9al  
approval to ! eligible applicant to     
p>ticipate 9 ! program4  7#b7 ,exception
 ,n lat] ?an #cj days aft] ! date on :i*
 an eligible applicant1 ! p>tn]%ip or   
managem5t agreem5t ( :i* con=ms to      
models approv$ by ! ,adm9i/rator1       
satisfies ! conditions id5tifi$ by !    
,adm9i/rator "u subsection 7a71 !       
,adm9i/rator %all provide f9al approval 
to ! eligible applicant to p>ticipate 9 
! program4  7#c7 ,revocation (          
conditional approval ,if an eligible    
applicant fails to satisfy ! conditions 
id5tifi$ by ! ,adm9i/rator "u subsection
 7a7 9 ! "t p]iod requir$ by t          
subsection1 ! ,adm9i/rator %all revoke !
 conditional approval4  #cii;,f4 ,equity
 f9anc+s  7a7 ,9 g5]al ,! ,adm9i/rator  
may make #a or m equity f9anc+s to a    
p>ticipat+ inve/m5t company4  7b7       
,equity f9anc+ am\nts  7#a7 ,non-,f$]al 

capital ,an equity f9anc+ made to a     
p>ticipat+ inve/m5t company "u ! program
 may n be 9 an am\nt t exce$s ! am\nt ( 
! capital ( ! p>ticipat+ inve/m5t       
company t is n f a ,f$]al s\rce & t is  
available = inve/m5t on or be=e ! date  
on :i* an equity f9anc+ is drawn ^u by !
 p>ticipat+ inve/m5t company4 ,! capital
 ( ! p>ticipat+ inve/m5t company may    
include legally b9d+ commitm5ts )       
respect to capital = inve/m5t4  7#b7    
,limitation on aggregate am\nt ,!       
aggregate am\nt ( all equity f9anc+s    
made to a p>ticipat+ inve/m5t company "u
 ! program may n exce$ #ajj1jjj1jjj4    
7c7 ,equity f9anc+ process ,9 mak+ an   
equity f9anc+ "u ! program1 !           
,adm9i/rator %all commit an equity      
f9anc+ am\nt to a p>ticipat+ inve/m5t   
company1 & ! am\nt ( ea* commitm5t %all 
rema9 available to be drawn ^u by a     
p>ticipat+ inve/m5t company--  7#a7 =   
new-nam$ inve/m5ts1 dur+ ! #e-ye> p]iod 
beg9n+ on ! date on :i* ! commitm5t is  
fir/ drawn ^u by ! p>ticipat+ inve/m5t  

company2 &  7#b7 = foll[-on inve/m5ts & 
managem5t fees1 dur+ ! #aj-ye> p]iod    
beg9n+ on ! date on :i* ! commitm5t is  
fir/ drawn ^u by ! p>ticipat+ inve/m5t  
company1 ) n m ?an #b additional #a-ye> 
p]iods available at ! discretion ( !    
,adm9i/rator4  7d7 ,commitm5t ( funds ,n
 lat] ?an #b ye>s aft] ! date on :i*    
funds are appropriat$ = ! program1 !    
,adm9i/rator %all make commitm5ts =     
equity f9anc+s4  #cii;,g4 ,inve/m5ts 9  
e>ly-/age small bus9esses  7a7 ,9 g5]al 
,z a condition ( receiv+ an equity      
f9anc+ "u ! program1 a p>ticipat+       
inve/m5t company %all make all ( !      
inve/m5ts ( ! p>ticipat+ inve/m5t       
company made ) am\nts receiv$ "u !      
program1 includ+ securities1 promissory 
notes1 or o!r obligations1 9 small      
bus9ess conc]ns1 ( :i* at lea/ #ej p]c5t
 ( ! total am\nt ( su* inve/m5ts %all be
 9 e>ly-/age small bus9esses 9 t>get$   
indu/ries4  7b7 ,evaluation ( compliance
 ,aft] a p>ticipat+ inve/m5t company has
 exp5d$ n less ?an #ej p]c5t ( ! am\nt (

 an equity f9anc+ commitm5t made "u     
section #cii;,f1 ! ,adm9i/rator %all    
evaluate ! compliance ( ! p>ticipat+    
inve/m5t company ) ! requirem5ts "u     
subsection 7a74  7c7 ,waiv] ,!          
,adm9i/rator may waive ! requirem5ts = a
 p>ticipat+ inve/m5t company "u         
subsection 7a7 if ! ,adm9i/rator        
det]m9es t x is 9 ! be/ int]e/ ( ! long 
t]m solv5cy ( ! fund e/abli%$ 9 section 
#cii;,j4  #cii;,h4 ,pro rata inve/m5t   
%>es ,ea* inve/m5t made by a p>ticipat+ 
inve/m5t company "u ! program %all be   
treat$ z compris$ ( capital f equity    
f9anc+s "u ! program accord+ to ! ratio 
t capital f equity f9anc+s "u ! program 
be>s to all capital available to !      
p>ticipat+ inve/m5t company = inve/m5t4 
#cii;,i4 ,equity f9anc+ int]e/  7a7     
,equity f9anc+ ,int]e/  7#a7 ,9 g5]al ,z
 a condition ( receiv+ an equity f9anc+ 
"u ! program1 a p>ticipat+ inve/m5t     
company %all convey an equity f9anc+    
int]e/ to ! ,adm9i/rator 9 accordance ) 
p>agraph 7#b74  7#b7 ,effect (          

conveyance ,! equity f9anc+ int]e/      
convey$ "u p>agraph 7#a7--  7,a7 %all h 
all ! rights & attributes ( o!r inve/ors
 attributable to _! int]e/s 9 !         
p>ticipat+ inve/m5t company2  7,b7 %all 
n d5ote control or vot+ rights to !     
,adm9i/rator2 &  7,c7 %all entitle !    
,adm9i/rator to a pro rata portion ( any
 di/ributions made by ! p>ticipat+      
inve/m5t company equal to ! p]c5tage (  
capital 9 ! p>ticipat+ inve/m5t company 
t ! equity f9anc+ comprises1 :i* %all be
 made at ! same times & 9 ! same am\nts 
z any o!r inve/or 9 ! p>ticipat+        
inve/m5t company ) a simil> int]e/4     
7#c7 ,allocations ,a p>ticipat+ inve/m5t
 company %all make allocations ( income1
 ga91 loss1 d$uction1 & cr$it to !      
,adm9i/rator ) respect to ! equity      
f9anc+ int]e/ z if ! ,adm9i/rator 7 an  
inve/or4  7b7 ,manag] pr(its ,z a       
condition ( receiv+ an equity f9anc+ "u 
! program1 ! manag] pr(its int]e/       
payable to ! manag]s ( a p>ticipat+     
inve/m5t company "u ! program %all n    

exce$ #bj p]c5t ( pr(its1 exclusive (   
any pr(its t may accrue z a result ( !  
capital contributions ( any su* manag]s 
) respect to ! p>ticipat+ inve/m5t      
company4 ,any excess ( manag] pr(its    
int]e/1 less taxes payable !reon1 %all  
be return$ by ! manag]s & paid to !     
inve/ors & ! ,adm9i/rator 9 proportion  
to ! capital contributions & equity     
f9anc+s paid 94 ,no manag] pr(its int]e/
 7o!r ?an a tax di/ribution7 %all be    
paid be=e ! repaym5t to ! inve/ors & !  
,adm9i/rator ( all contribut$ capital & 
equity f9anc+s made4  7c7 ,di/ribution  
requirem5ts ,z a condition ( receiv+ an 
equity f9anc+ "u ! program1 a p>ticipat+
 inve/m5t company %all make all         
di/ributions to all inve/ors 9 ca% &    
%all make di/ributions )9 a reasonable  
"t aft] exit+ inve/m5ts1 includ+ foll[+ 
a public (f]+ or m>ket sale ( und]ly+   
inve/m5ts4  #cii;,j4 ,fund ,!re is      
e/abli%$ 9 ! ,treasury a sep>ate acc\nt 
79 ?is section ref]r$ to z ! fund7 =    
equity f9anc+s :i* %all be available to 

! ,adm9i/rator1 subject to annual       
appropriations1 z a revolv+ fund to be  
us$ = ! purposes ( ! program4 ,all      
am\nts receiv$ by ! ,adm9i/rator "u !   
program1 includ+ any moneys1 prop]ty1 or
 assets d]iv$ by ! ,adm9i/rator f       
op]ations 9 connection ) ! program1 %all
 be deposit$ 9 ! fund4  #cii,k4         
,application ( o!r sections ,to ! ext5t 
n inconsi/5t ) requirem5ts "u ?is "p1 ! 
,adm9i/rator may apply sections #cji1   
#caa1 #cab1 #cac1 & #cad to activities  
"u ?is "p1 & an (fic]1 director1        
employee1 ag5t1 or o!r p>ticipant 9 a   
p>ticipat+ inve/m5t company %all be     
subject to ! requirem5ts "u su*         
sections4  #cii,l4 ,annual report+ ,!   
,adm9i/rator %all include in=mation on !
 p]=mance ( ! program 9 ! annual        
p]=mance report ( ! ,adm9i/ration       
requir$ to be submitt$ "u section       
#aj7;a7 ( ! ,small ,bus9ess ,act 7#ae   
,u4,s4,c4 #fci7;a774  4