,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #ebbe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #aj1        
#bjba,ms4 ,h\lahan introduc$ ! foll[+   
bill2 :i* 0 ref]r$ to ! ,committee on   
,small ,bus9ess  ,a ,,bill  ,to am5d !  
,small ,bus9ess ,inve/m5t ,act ( #aieh  
to e/abli% a ,micro-,,sbic program1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,micro-,,sbic & ,em]g+ 
,manag]s ,program ,act ( #bjba4  #b4    
,micro-,,sbic lic5se ,"p ,a ( title     
,,iii ( ! ,small ,bus9ess ,inve/m5t ,act
 ( #aieh 7#ae ,u4,s4,c4 #fha et seq47 is
 am5d$ by add+ at ! end ! foll[+ new    
sections3  #cba4 ,micro-,,sbic lic5se   
7a7 ,e/abli%m5t ,! ,adm9i/rator %all    
e/abli% a program to issue ,micro-,,sbic
 lic5ses to applicants = ! purpose (    
mak+ inve/m5ts 9 & loans to qualifi$    
small bus9ess conc]ns4  7b7             
,adm9i/ration ,to ! ext5t practicable1 !
 ,adm9i/rator %all adm9i/] ! program    
e/abli%$ "u ?is section 9 a simil> mann]
 to ! program e/abli%$ "u section #cja4 

7c7 ,applications ,an applicant %all    
submit an application to ! ,adm9i/rator 
at su* "t1 9 su* mann]1 & conta9+ su*   
in=mation z ! ,adm9i/rator may require1 
includ+-- 7#a7 evid5ce t ! applicant    
holds private capital ( n less ?an      
#e1jjj1jjj2 &  7#b7 evid5ce t !         
managem5t ( ! applicant has significant 
bus9ess exp]tise relevant to !          
applicant's inve/m5t /rategy4  7d7      
,selection ( ,micro-,s,b,i,cs ,!        
,adm9i/rator %all select applicants to  
be grant$ a lic5se to op]ate a          
,micro-,,sbic "u ?is section4  7e7      
,guidance ,! ,adm9i/rator %all issue    
guidance t enc\rages ! p>ticipation (   
nontraditional applicants by r$uc+      
requirem5ts = applicants4 ,su*          
guidance-- 7#a7 may include !           
requirem5ts e/abli%$ "u "p #ajg ( title 
#ac1 ,code ( ,f$]al ,regulations2 &     
7#b7 %all all[ applicants :o h n        
previ\sly manag$ an inve/m5t company to 
demon/rate significant bus9ess exp]tise 
relevant to ! applicant's inve/m5t      

/rategy by reliance ^u ! pres5ce ( at   
lea/ two track record inve/m5t committee
 memb]s or p>ticipation 9 ! ,em]g+      
,manag]s ,program e/abli%$ "u section   
#cbb4  7f7 ,proc$ures = issu+ lic5ses   
7#a7 ,/atus ,n lat] ?an #ij days aft] ! 
initial receipt by ! ,adm9i/rator ( an  
application "u ?is subsection1 !        
,adm9i/rator %all provide ! applicant ) 
a writt5 report detail+ ! /atus ( !     
application & any requirem5ts rema9+ = !
 completion ( ! application4  7#b7      
,approval or disapproval ,except z      
provid$ 9 p>agraph 7#c7 & )9 a          
reasonable "t aft] provid+ ! report "u  
p>agraph 7#a71 & 9 accordance ) su*     
requirem5ts z ! ,adm9i/rator may        
provide1 ! ,adm9i/rator %all-- 7,a7     
approve ! application & issue !         
applicant a lic5se to op]ate z a        
,micro-,,sbic2 or  7,b7 disapprove !    
application & notify ! applicant 9 writ+
 ( ! disapproval1 includ+ reasons = !   
disapproval4  7#c7 ,provisional approval
  7,a7 ,9 g5]al ,! ,adm9i/rator may     

provide provisional approval to an      
applicant to-- 7i7 enc\rage inve/m5t    
company applicants ) an inve/m5t m&ate f
 ! committ$ private m>ket capital ( !   
inve/m5t company t does n con=m to !    
requirem5ts relat+ to private capital 9 
subsection 7c7 at ! "t ( application2   
7ii7 all[ ! applicant to m effectively  
raise capital commitm5ts f ! private    
m>ket by su* provisional approval2 &    
7iii7 all[ ! applicant to m precisely   
reque/ ! desir$ am\nt ( lev]age f !     
,adm9i/rator p5d+ ! secur+ ( capital f  
private m>ket inve/ors4  7,b7           
,limitation ,an applicant provid$       
provisional approval "u subp>agraph 7,a7
 %all apply = approval "u p>agraph 7#b7 
n lat] ?an #ab mon?s aft] be+ grant$ su*
 provisional approval4  7g7 ,maximum    
lev]age  7#a7 ,9 g5]al ,! maximum am\nt 
( out/&+ lev]age made available to any  
"o ,micro-,,sbic may n exce$-- 7,a7 #ej 
p]c5t ( ! private capital ( su*         
,micro-,,sbic1 n to exce$ #be1jjj1jjj2  
or  7,b7 9 ! case ( a ,micro-,,sbic own$

 by p]sons t also own a small bus9ess   
inve/m5t company lic5s$ "u section #cja1
 #ajj p]c5t ( ! private capital ( su*   
,micro-,,sbic1 n to exce$ #ej1jjj1jjj4  
7#b7 ,inve/m5ts 9 c]ta9 bus9ess  7,a7 ,9
 g5]al ,9 calculat+ ! out/&+ lev]age ( a
 ,micro-,,sbic = purposes ( subp>agraph 
7,a71 ! ,adm9i/rator %all exclude !     
am\nt ( ! co/s basis ( any inve/m5ts    
made 9 an entity describ$ 9 subp>agraph 
7,b7 9 an am\nt n to exce$-- 7i7        
#be1jjj1jjj2 or  7ii7 9 ! case ( a      
,micro-,,sbic own$ by p]sons t also own 
a small bus9ess inve/m5t company lic5s$ 
"u section #cja1 #ej1jjj1jjj4  7,b7     
,entities ,an entity describ$ 9 ?is     
subp>agraph is-- 7i7 a ,special         
,competitive ,opportunity ,gap ,bus9ess 
7z def9$ by ! ,adm9i/rator72  7ii7 a    
small bus9ess conc]n locat$ 9 a         
,h,u,b,zone2  7iii7 a small bus9ess     
conc]n locat$ 9 a community t has be5   
designat$ z an emp[]m5t zone or an      
ent]prise community "u section #acia ( !
 ,int]nal ,rev5ue ,code ( #aihf2  7iv7 a

 small bus9ess conc]n locat$ 9 a        
community t has be5 designat$ z a       
promise zone by ! ,secret>y ( ,h\s+ &   
,urban ,developm5t2 or  7v7 a small     
bus9ess conc]n locat$ 9 a community t   
has be5 designat$ z a qualifi$          
opportunity zone "u section #adjj,z-#a (
 ! ,int]nal ,rev5ue ,code ( #aihf4  7#c7
 ,portfolio div]sification ,!           
,adm9i/rator %all revise section        
#ajg4gdj ( title #ac1 ,code ( ,f$]al    
,regulations1 to provide = a high]      
ov]l9e limit = a ,micro-,,sbic comp>$ to
 o!r small bus9ess inve/m5t companies4  
7h7 ,report ,! ,adm9i/rator %all include
 9 ! annual report requir$ "u section   
#aj7;a7 ( ! ,small ,bus9ess ,act a      
description (-- 7#a7 ! numb] (          
applications receiv$ "u ?is subsection1 
includ+ ! numb] ( applications receiv$ f
 applicants ! managem5t ( :i* is at lea/
 majority compos$ ( socially            
disadvantag$ individuals or vet]ans2    
7#b7 ! numb] ( lic5ses issu$ "u ?is     
section1 includ+ ! numb] ( su* lic5ses  

issu$ to applicants ! managem5t ( :i* is
 at lea/ majority compos$ ( socially    
disadvantag$ individuals or vet]ans2    
7#c7 ! numb] ( inve/m5ts made by        
,micro-,s,b,i,cs 9 ,special ,competitive
 ,opportunity ,gap ,bus9esses1          
disaggregat$ by ! type ( ,special       
,competitive ,opportunity ,gap ,bus9ess2
 &  7#d7 ! numb] ( inve/m5ts made by    
,micro-,s,b,i,cs1 disaggregat$ by debt1 
debt ) equity features1 & equity only4  
7i7 ,def9itions ,9 ?is section3 7#a7    
,applicant ,! t]m applicant means an    
incorporat$ body1 a limit$ liability    
corporation1 or a limit$ p>tn]%ip       
organiz$ & *>t]$ or o!rwise exi/+ "u    
,/ate law solely = ! purpose ( secur+ a 
,micro-,,sbic lic5se to p]=m ! functions
 & conduct ! activities describ$ "u ?is 
section4  7#b7 ,managem5t ,! t]m        
managem5t means a g5]al p>tn] ( an      
applicant or memb] ( ! inve/m5t         
committee ( ! applicant4  7#c7          
,micro-,,sbic ,! t]m ,micro-,,sbic means
 a company issu$ a lic5se to op]ate     

pursuant to ! requirem5ts ( ?is section4
  7#d7 ,micro-,,sbic lic5se ,! t]m      
,micro-,,sbic lic5se means a lic5se     
issu$ to an applicant to op]ate pursuant
 to ! requirem5ts ( ?is section4  7#e7  
,socially disadvantag$ individual ,! t]m
 socially disadvantag$ individual-- 7,a7
 has ! mean+ giv5 9 section #h7;a77#e7 (
 ! ,small ,bus9ess ,act2 &  7,b7        
includes an individual :o is a woman4   
7#f7 ,track record inve/m5t committee   
memb] ,! t]m track record inve/m5t      
committee memb] means a curr5t or =m]   
small bus9ess inve/m5t company or       
l[]-middle m>ket private equity fund    
manag] ) ! k1 exp]i5ce1 & capability    
necess>y to s]ve z managem5t = an       
applicant4  7#g7 ,vet]an ,! t]m vet]an  
has ! mean+ giv5 "u section #c7q77#d7 ( 
! ,small ,bus9ess ,act4  #cbb4 ,em]g+   
,manag]s ,program  7a7 ,e/abli%m5t ,!   
,adm9i/rator %all e/abli% a program to  
be kn[n z ! ,em]g+ ,manag]s ,program "u 
:i* a cov]$ manag] may ent] into a      
writt5 agreem5t approv$ by !            

,adm9i/rator to provide guidance &      
assi/ance to an applicant = a small     
bus9ess inve/m5t company lic5se or a    
,micro-,,sbic lic5se t is manag$ by n   
less ?an two individuals :o are em]g+   
manag]s4  7b7 ,lev]age ,lev]age made    
available to a small bus9ess inve/m5t   
company or ,micro-,,sbic t is manag$ by 
at lea/ two individuals :o are em]g+    
manag]s %all n be consid]$ z "p ( !     
lev]age made available to a cov]$       
manag]4  7c7 ,report ,n lat] ?an #e ye>s
 aft] ! date ( enactm5t ( ?is ,act1 !   
,adm9i/rator %all submit to ! ,committee
 on ,small ,bus9ess ( ! ,h\se (         
,repres5tatives & ! ,committee on ,small
 ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate a
 report evaluat+ ! effectiv5ess ( !     
,em]g+ ,manag]s ,program e/abli%$ "u ?is
 section1 includ+ ) respect to increas+ 
! numb] ( applications receiv$ by &     
lic5ses issu$ to em]g+ manag]s4  7d7    
,def9itions ,9 ?is subsection3 7#a7     
,cov]$ manag] ,! t]m cov]$ manag]       
means-- 7,a7 a manag] ) sub/antial      

exp]i5ce 9 op]at+ small bus9ess inve/m5t
 companies2 &  7,b7 z det]m9$ by !      
,adm9i/rator1 a manag] ( a private      
equity fund or v5ture fund t is n lic5s$
 z a small bus9ess inve/m5t company4    
7#b7 ,em]g+ manag] ,! t]m em]g+ manag]  
means an individual ) an inve/m5t record
 ( less ?an #aj ye>s1 or ) a focus on   
und]s]v$ m>kets4  4