,,ii  #aad? ,,congress  #b;d ,session   
,s4 #ccge  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ba1         
#bjaf,ms4 ,baldw9 7= h]self & ,mr4      
,pet]s7 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 ( #bjaf4  #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 ,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$ positive ca% fl[ f op]ations 9  
any fiscal ye> be=e ! date on :i* a     
p>ticipat+ inve/m5t company makes an    
initial inve/m5t 9 ! small bus9ess      
conc]n4  7#b7 ,eligible applicant ,! t]m
 eligible applicant means a limit$      
liability company or a limit$ p>tn]%ip  
organiz$ & *>t]$ or o!rwise exi/+ "u    
,f$]al or ,/ate law = ! purpose ( p]=m+ 
! functions & conduct+ ! activities     
contemplat$ "u ! program1 includ+ ^?    
manag$ by 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  7#h7   
,tempor>y debt ,! t]m tempor>y debt     
means borr[+s ( a p>ticipat+ inve/m5t   
company-- 7,a7 ) a t]m n to exce$ #ij   
days f a regulat$ f9ancial in/itution = 
! purpose ( ma9ta9+ op]at+ liquidity ( !
 p>ticipat+ inve/m5t company or provid+ 
funds = a p>ticul> f9anc+ ( a small     
bus9ess conc]n2 &  7,b7 t d n exce$ #ej 
p]c5t ( ! lev]ag$ capital ( ! p>ticipat+
 inve/m5t company4  #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 ,an eligible     
applicant t desires to p>ticipate 9 !   
program %all submit to ! ,adm9i/rator an
 application t includes--  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 &   
o!r requirem5ts to p>ticipate 9 !       
program "u section #cii;,e4  #cii;,e4   
,selection ( p>ticipat+ inve/m5t        
companies  7a7 ,9 g5]al ,n lat] ?an #abj
 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 a ,f$]al ag5cy1 includ+--  7,a7 
! ,national ,in/itutes ( ,heal?2  7,b7 !
 ,national ,sci5ce ,f\ndation2 &  7,c7  
funds receiv$ f a ,f$]al ag5cy "u !     
,small ,bus9ess ,innovation ,rese>*     
,program or ! ,small ,bus9ess ,te*nology
 ,transf] ,program1 z su* t]ms are def9$
 "u section #i ( ! ,small ,bus9ess ,act 
7#ae ,u4,s4,c4 #fch74  7c7 ,regulatory  
capital requirem5ts ,to p>ticipate 9 !  
program1 an eligible applicant %all h   
regulatory capital-- 7#a7 9 an am\nt t  
is n less ?an #bj1jjj1jjj1 unless !     
,adm9i/rator det]m9es t ! eligible      
applicant c h long-t]m f9ancial         
viability ) a l[] am\nt ( regulatory    
capital2 &  7#b7 ( :i* n m ?an #cc p]c5t

 is f ,/ate or local gov]nm5t entities4 
7d7 ,non-,affiliation requirem5t ,to    
p>ticipate 9 ! program1 n less ?an #cj  
p]c5t ( ! regulatory & lev]ageable      
capital ( an eligible applicant %all    
come f #c p]sons unaffiliat$ ) !        
managem5t ( ! fund & unaffiliat$ ) ea*  
o!r4  7e7 ,?ird-,p>ty debt ,to          
p>ticipate 9 ! program1 an eligible     
applicant may n incur debt1 o!r ?an     
lev]age1 unless ! debt is tempor>y debt4
  #cii;,f4 ,equity f9anc+s  7a7 ,9 g5]al
 ,! ,adm9i/rator may make "o 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 )          
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  7d7 ,res]ve requirem5ts     
7#a7 ,9 g5]al ,a p>ticipat+ inve/m5t    
company ) an out/&+ equity f9anc+ "u !  
program %all1 dur+ ! fir/ #e ye>s ( !   
t]m ( ea* deb5ture :i* requires p]iodic 
int]e/ paym5ts to ,adm9i/ration1 ma9ta9 
a res]ve suffici5t to pay ! int]e/ &    
*>ges on ! deb5ture = ! fir/ #ba paym5ts
 due aft] ! date ( issuance4  7#b7 ,=m  
,! res]ve requir$ "u ?is subsection may 
consi/ ( any comb9ation (-- 7,a7 b9d+   
unfund$ commitm5ts f in/itutional       
inve/ors ( ! p>ticipat+ inve/m5t company
 t may only be call$ = ! purpose (--    

7i7 ! paym5t ( int]e/ & *>ges to !      
,adm9i/ration2 or  7ii7 ! paym5t ( any  
o!r am\nts due to ! ,adm9i/ration2 &    
7,b7 ca% ma9ta9$ 9 a sep>ate bank acc\nt
 or sep>ate inve/m5t acc\nt p]mitt$ by !
 ,adm9i/ration by regulation & sep>ately
 id5tifi$ 9 ! f9ancial /atem5ts ( !     
p>ticipat+ inve/m5t company z re/rict$  
ca% available only = ! purpose (--  7i7 
pay+ int]e/ & *>ges to ! ,adm9i/ration2 
or  7ii7 ! paym5t ( any o!r am\nts due  
to ! ,adm9i/ration4  7#c7 ,r$uction (   
requir$ am\nt  7,a7 ,9 g5]al ,! requir$ 
res]ve associat$ ) a deb5ture %all be   
r$uc$ on ea* paym5t date ^u paym5t ( !  
requir$ int]e/ & *>ges to !             
,adm9i/ration4  7,b7 ,elim9ation ,if a  
p>ticipat+ inve/m5t company prepays a   
deb5ture be=e ! due date = ! tw5ty-fir/ 
paym5t aft] ! date on :i* ! deb5ture is 
issu$1 ! res]ve requirem5t ) respect to 
! deb5ture %all be elim9at$4  7#d7      
,inclusion 9 =mation docum5ts ,! =mation
 docum5ts = a p>ticipat+ inve/m5t       
company %all incorporate ! res]ve       

requirem5ts "u ?is subsection4  #cii;,j4
 ,fund  7a7 ,9 g5]al ,!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  7b7 ,funds      
adm9i/ration ,n m ?an #a p]c5t ( ! total
 am\nt made available = ! fund 9 a      
fiscal ye> may be us$ = funds           
adm9i/ration4  #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