,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #cchc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #af1 #bjbc,mr4   
,phillips 7= himself1 ,mr4 ,moore (     
,utah1 ,ms4 ,h\lahan1 ,mr4 ,johnson (   
,s\? ,dakota1 ,ms4 ,tokuda1 ,mr4        
,fitzpatrick1 ,mr4 ,pocan1 & ,mr4       
,meus]7 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% an employee equity inve/m5t     
facility1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z !         
,employee ,equity ,inve/m5t ,act (      
#bjbc4  #b4 ,employee equity inve/m5t   
facility  7a7 ,def9itions ,section #ajc 
( ! ,small ,bus9ess ,inve/m5t ,act (    
#aieh 7#ae ,u4,s4,c4 #ffb7 is am5d$--   
7#a7 9 p>agraph 7#ai71 by /rik+ & at !  
end2  7#b7 9 p>agraph 7#bj71 by /rik+ ! 
p]iod at ! end & ins]t+ a semicolon2 &  
7#c7 by add+ at ! end ! foll[+3  7#ba7 !
 t]m cov]$ inve/m5t means1 ) respect to 
an inve/m5t 9 a cov]$ small bus9ess     

conc]n-- 7,a7 ! provision ( capital to  
f9ance ! sale ( an own]%ip int]e/ ( a   
cov]$ small bus9ess conc]n1 includ+ a   
cov]$ small bus9ess conc]n creat$ z a   
result ( a corporate dive/iture1 to an  
employee /ock own]%ip plan or eligible  
work]-own$ coop]ative if su* sale       
results 9-- 7i7 ! employee /ock own]%ip 
plan or eligible work]-own$ coop]ative1 
respectively1 hold+ a majority int]e/ ( 
! out/&+ /ock ( ! cov]$ small bus9ess   
conc]n2 &  7ii7 ) respect to su* a sale 
to an employee /ock own]%ip plan1 !     
appo9tm5t ( an indep5d5t tru/ee = !     
transaction2 or  7,b7 ! provision (     
capital to f9ance a cov]$ small bus9ess 
conc]n if-- 7i7 an employee /ock own]%ip
 plan or eligible work]-own$ coop]ative 
holds a majority int]e/ ( ! out/&+ /ock 
( ! cov]$ small bus9ess conc]n1 prior to
 & imm$iately foll[+ ! provision (      
capital2 &  7ii7 ! provision ( capital  
does n r$uce ! p]c5tage ( /ock ( ! cov]$
 small bus9ess conc]n held by ! employee
 /ock own]%ip plan or eligible          

work]-own$ coop]ative 7z applicable71   
exclud+ any syn!tic equity2  7#bb7 ! t]m
 cov]$ small bus9ess conc]n-- 7,a7 means
 a small bus9ess conc]n2 &  7,b7 )      
respect to an employee equity inve/m5t  
company t is n a ,protege ,,eeic1       
includes an entity t is n m ?an #cjj    
p]c5t l>g] ?an ! size /&>ds e/abli%$ =  
categoriz+ a bus9ess conc]n z a small   
bus9ess conc]n "u section #c7;a7 ( !    
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fcb7;a772  7#bc7 ! t]m eligible        
work]-own$ coop]ative has ! mean+ giv5 t
 t]m 9 section #ajdb7;c7 ( ! ,int]nal   
,rev5ue ,code ( #aihf2  7#bd7 ! t]m     
employee equity inve/m5t company means a
 small bus9ess inve/m5t company-- 7,a7 t
 id5tifies at ! "t ( application =      
lic5sure "u section #cja an int5t to be 
lic5s$ z an employee equity inve/m5t    
company2 &  7,b7 = :i*-- 7i7 n less ?an 
#ge p]c5t ( ! total capital manag$ by ! 
inve/m5t firm %all be inve/$ 9 cov]$    
inve/m5ts2  7ii7 n less ?an #ej p]c5t ( 
! total capital manag$ by ! inve/m5t    

firm %all be inve/$ 9 cov]$ inve/m5ts   
describ$ 9 p>agraph 7#ba77;,a72  7iii7  
cov]$ inve/m5t returns are obta9$ f     
debt1 syn!tic equity1 or a comb9ation   
!re(1 includ+ returns obta9$ f ca%      
int]e/1 paym5t-9-k9d int]e/1 & /ock     
w>rants2 &  7iv7 any inve/m5t t is n a  
cov]$ inve/m5t is an inve/m5t 9 a small 
bus9ess conc]n2  7#be7 ! t]m employee   
/ock own]%ip plan has ! mean+ giv5 t t]m
 9 section #dige7;e7 ( ! ,int]nal       
,rev5ue ,code ( #aihf2  7#bf7 ! t]m     
indep5d5t tru/ee means a tru/ee t-- 7,a7
 is 9 ! pr(ession ( s]v+ z a fiduci>y = 
employee /ock own]%ip plans2  7,b7 has  
nev]-- 7i7 p]=m$ s]vices = or on behalf 
( any p>ty sell+ an own]%ip int]e/ 9 !  
cov]$ small bus9ess conc]n to ! employee
 /ock own]%ip plan involv$ 9 !          
transaction ! tru/ee is consid]+2 or    
7ii7 be5 a director1 (fic]1 or employee 
( ! cov]$ small bus9ess conc]n2  7,c7   
has n p]=m$ s]vices = or on behalf ( !  
cov]$ small bus9ess conc]n at any "t    
dur+ ! #e-ye> p]iod end+ on ! date (    

execution ( ! transaction ! tru/ee is   
consid]+1 unless su* s]vices solely     
consi/$ ( act+ z a fiduci>y ( an        
employee b5efit plan 7includ+ an        
employee /ock own]%ip plan7 "u !        
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajja et    
seq472  7,d7 has n p]=m$ s]vices relat$ 
to ! transaction ! tru/ee is consid]+1 =
 or on behalf (-- 7i7 ! employee equity 
inve/m5t company t is prep>+ to or has  
already allocat$ capital to ! cov]$     
small bus9ess2 or  7ii7 any o!r entity t
 is /ructur+ or f9anc+ ! transaction =  
any p>ty o!r ?an ! employee /ock own]%ip
 plan2 &  7,e7 does n h a familial or   
corporate relation%ip 7su* z a          
p>5t-subsidi>y relation%ip7 to any p]son
 or entity describ$ 9 subp>agraph 7,b71 
7,c71 or 7,d72  7#bg7 ! t]m indep5d5t   
f9ancial advisor means a f9ancial or    
valuation advisor t-- 7,a7 is 9 !       
pr(ession ( s]v+ z a f9ancial or        
valuation advisor = transactions involv+
 employee /ock own]%ip plans2  7,b7 has 

nev]-- 7i7 p]=m$ s]vices1 includ+ a     
prelim9>y valuation1 = or on behalf (-- 
7,i7 any p>ty sell+ an own]%ip int]e/ 9 
! cov]$ small bus9ess conc]n to !       
employee /ock own]%ip plan involv$ 9 !  
transaction ! advisor is evaluat+2 or   
7,,ii7 ! cov]$ small bus9ess conc]n1    
unless ! s]vices 7 provid$ solely to an 
exi/+ employee /ock own]%ip plan        
sponsor$ by ! cov]$ small bus9ess       
conc]n2 or  7ii7 be5 a director1 (fic]1 
or employee ( ! cov]$ small bus9ess     
conc]n2  7,c7 has n p]=m$ s]vices relat$
 to ! transaction ! advisor is evaluat+1
 includ+ a prelim9>y valuation1 = or on 
behalf (-- 7i7 ! employee equity        
inve/m5t company t is prep>+ to or has  
already allocat$ capital to ! cov]$     
small bus9ess2 or  7ii7 any o!r entity t
 is /ructur+ or f9anc+ ! transaction =  
any p>ty o!r ?an ! employee /ock own]%ip
 plan2 &  7,d7 does n h a familial or   
corporate relation%ip 7su* z a          
p>5t-subsidi>y relation%ip7 to any (    
p]son or entity describ$ 9 subp>agraph  

7,b7 or 7,c72  7#bh7 ! t]m non-,,eeic   
company means a small bus9ess inve/m5t  
company t-- 7,a7 is lic5s$ "u section   
#cja2  7,b7 is select$ to receive       
lev]age f ! facility e/abli%$ "u section
 #cba2 &  7,c7 is n an employee equity  
inve/m5t company2  7#bi7 ! t]m out/&+   
/ock means %>es ( /ock1 includ+ syn!tic 
equity2  7#cj7 ! t]m ,protege ,,eeic    
means an entity lic5s$ "u section #cja z
 an employee equity inve/m5t company &  
select$ 9 accordance ) section          
#cbb7;c7-- 7,a7 = :i* ! manag]s ( ! firm
 h a docum5t$ record ( successful       
bus9ess exp]i5ce2 &  7,b7 t has an      
inve/m5t track record t does n meet !   
requirem5ts to be lic5s$ "u section     
#cja2 &  7#ca7 ! t]m syn!tic equity has 
! mean+ giv5 t t]m 9 section #dji7p77#f7
 ( ! ,int]nal ,rev5ue ,code ( #aihf4  4 
7b7 ,employee equity inve/m5t facility  
,"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[+3  #cba4 ,employee equity       

inve/m5t facility  7a7 ,def9ition (     
facility ,9 ?is section1 ! t]m facility 
means ! facility e/abli%$ "u subsection 
7b74  7b7 ,e/abli%m5t ,! ,adm9i/rator1  
act+ ?r\gh ! ,associate ,adm9i/rator ( !
 ,(fice ( ,inve/m5t & ,innovation ( !   
,adm9i/ration1 %all e/abli% & c>ry out a
 facility to provide lev]age to lic5s$  
employee equity inve/m5t companies &    
non-,,eeic companies = ! purpose (      
enc\rag+ cov]$ inve/m5ts4  7c7          
,application  7#a7 ,9 g5]al ,an inve/m5t
 firm desir+ to p>ticipate 9 ! facility 
%all submit to ! ,adm9i/rator an        
application-- 7,a7 to be lic5s$ to      
p>ticipate 9 ! facility z an employee   
equity inve/m5t company 7includ+ z a    
,protege ,,eeic72 or  7,b7 to be select$
 to p>ticipate z a non-,,eeic company4  
7#b7 ,roll+ basis ,! ,adm9i/rator %all  
accept applications "u p>agraph 7#a7 on 
a roll+ basis4  7#c7 ,electronic        
submissions ,! ,adm9i/rator %all all[ an
 applicant "u ?is section to            
electronically submit any docum5t       

requir$ by ?is section & to provide an  
electronic signature = any signature t  
is requir$ on su* a docum5t4  7#d7      
,application process ,an inve/m5t firm  
%all id5tify an int5t to be lic5s$ z an 
employee equity inve/m5t company at ! "t
 ! inve/m5t firm applies to be lic5s$ z 
a small bus9ess inve/m5t company "u     
section #cja4  7d7 ,provisional approval
 ,! ,adm9i/rator may provide provisional
 approval = a lic5se to p>ticipate 9 !  
facility z an employee equity inve/m5t  
company = a p]iod n to exce$ #a ye> to  
an inve/m5t firm submitt+ an application
 "u subsection 7c7-- 7#a7 t does n meet 
! m9imum private capital requirem5ts "u 
section #cjb necess>y = lic5s+ "u       
section #cja at ! "t ( application2     
7#b7 t /ates an int5t to m effectively  
raise capital commitm5ts 9 private      
m>kets ) a lic5se2 &  7#c7 t /ates an   
int5t to m precisely reque/ ! desir$    
am\nt ( lev]age cont+5t on secur+       
capital f private m>ket inve/ors4  7e7  
,comb9$ lev]age ,! ,adm9i/rator may n   

provide lev]age to employee equity      
inve/m5t companies & non-,,eeic         
companies "u ! facility 9 a total am\nt 
t is m ?an #e1jjj1jjj1jjj = a fiscal    
ye>4 ,n m ?an #bj p]c5t ( su* total     
am\nt may be provid$ to non-,,eeic      
companies4  7f7 ,transaction requirem5ts
  7#a7 ,9 g5]al ,) respect to a cov]$   
inve/m5t describ$ 9 section             
#ajc7ba77;,a7 involv+ a sale to an      
employee /ock own]%ip plan1 an indep5d5t
 tru/ee = ! employee /ock own]%ip plan  
%all be appo9t$ be=e ! execution ( !    
cov]$ inve/m5t = a p]iod ( "t t is      
suffici5t = ! indep5d5t tru/ee to fully 
evaluate ! propos$ transaction4  7#b7   
,fairness op9ion ,an indep5d5t tru/ee   
appo9t$ "u p>agraph 7#a7 %all obta9 a   
fairness op9ion on ! propos$ cov]$      
inve/m5t f an indep5d5t f9ancial        
advisor1 :i* %all evaluate :e!r ! price1
 t]ms1 & co/ ( f9anc+ ( ! propos$ cov]$ 
inve/m5t are f9ancially fair to !       
employee /ock own]%ip plan4  7g7        
,prohibitions  7#a7 ,f9anc+  7,a7 ,9    

g5]al ,an employee ( a cov]$ small      
bus9ess conc]n may n provide p]sonal    
f9anc+ ( any k9d = a cov]$ inve/m5t1    
includ+ ?r\gh a wage concession or      
rollov] ( a retirem5t plan4  7,b7       
,exceptions ,subp>agraph 7,a7 %all n    
apply to-- 7i7 f9anc+ provid$ by an     
employee = ! sale ( an own]%ip int]e/   
held by ! employee 9 a cov]$ small      
bus9ess conc]n2 or  7ii7 employee       
capital contributions or memb]%ip fees  
paid by memb]s ( an eligible work]-own$ 
coop]ative1 if su* am\nts are reasonable
 & cu/om>y & n us$ = ! pur*ase ( ! cov]$
 small bus9ess conc]n4  7#b7 ,control   
,an employee equity inve/m5t company or 
non-,,eeic company %all n ex]cise       
control ov] a cov]$ small bus9ess conc]n
 9 :i* ! employee equity inve/m5t       
company or non-,,eeic company1          
respectively1 has made a cov]$ inve/m5t4
  7h7 ,employee allocations ,) respect  
to a cov]$ inve/m5t describ$ 9 section  
#ajc7ba77;,a7 made by an employee equity
 inve/m5t company t involves an employee

 /ock own]%ip plan1 ! employee /ock     
own]%ip plan %all include a requirem5t t
 9 ! ev5t ( a sale to a ?ird p>ty ( !   
cov]$ small bus9ess conc]n 9 :i* ! cov]$
 inve/m5t is made1 ! proce$s t !        
employee /ock own]%ip plan receives f ! 
sale %all be di/ribut$ z ?\gh all %>es (
 /ock held by ! employee /ock own]%ip   
plan prior to ! sale 7 fully allocat$4  
7i7 ,recirculation ( %>es  7#a7 ,%>e    
c\nt ,) respect to a cov]$ inve/m5t     
describ$ 9 section #ajc7ba77;,a7 made by
 an employee equity inve/m5t company t  
involves an employee /ock own]%ip plan1 
! numb] ( %>es held by ! employee /ock  
own]%ip plan on ! f9al date ( ea* plan  
ye> %all n be less ?an ! numb] ( %>es   
held by ! employee /ock own]%ip plan on 
! execution date ( ! cov]$ inve/m5t4    
7#b7 ,limitation ,! requirem5ts "u      
p>agraph 7#a7 %all apply only ) respect 
to ! p]iod dur+ :i* ! employee equity   
inve/m5t company has an int]e/ 9 ! cov]$
 small bus9ess conc]n4  7#c7 ,exception 
,! requirem5t "u p>agraph 7#a7 may be   

waiv$ by ! indep5d5t tru/ee = !         
applicable employee /ock own]%ip plan4  
7j7 ,indep5d5t tru/ees ,) respect to a  
cov]$ inve/m5t describ$ 9 section       
#ajc7ba77;,a7 made by an employee equity
 inve/m5t company t involves an employee
 /ock own]%ip plan1 ! employee /ock     
own]%ip plan %all h an indep5d5t tru/ee 
dur+ ! p]iod t ! employee equity        
inve/m5t company has an int]e/ 9 ! cov]$
 small bus9ess conc]n4  7k7 ,small]     
ent]prises  7#a7 ,9 g5]al ,except z     
provid$ 9 p>agraph 7#b71 section        
#cjc7;d7 %all n apply to employee equity
 inve/m5t companies4  7#b7 ,protegee    
,e,e,i,cs ,section #cjc7;d7 %all apply  
to a ,protege ,,eeic4  7l7 ,proc$ures   
relat$ to a sale ( a cov]$ small bus9ess
 conc]n  7#a7 ,9 g5]al ,subject to      
p>agraph 7#b71 an employee equity       
inve/m5t company %all require z a       
condition ( mak+ a cov]$ inve/m5t       
describ$ 9 section #ajc7ba77;,a7 involv+
 an employee /ock own]%ip plan t-- 7,a7 
be=e any /ock sale or ! execution ( any 

corporate matt] li/$ 9 section          
#dji7;e77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf1 ! employee /ock own]%ip plan   
%all-- 7i7 appo9t an indep5d5t tru/ee = 
! transaction2 &  7ii7 require t !      
indep5d5t tru/ee obta9 a fairness op9ion
 f an indep5d5t f9ancial advisor1 :i*   
%all evaluate :e!r ! price1 t]ms1 & co/ 
( f9anc+ ( ! propos$ cov]$ inve/m5t are 
f9ancially fair to ! employee /ock      
own]%ip plan2 &  7,b7 ! employee /ock   
own]%ip plan requires t-- 7i7 9 addition
 to ! corporate matt]s li/$ 9 section   
#dji7;e77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf1 ea* p>ticipant or b5efici>y 9 !
 employee /ock own]%ip plan is entitl$  
to direct ! employee /ock own]%ip plan z
 to ! mann] 9 :i* vot+ rights "u        
securities ( ! employ] :i* are allocat$ 
to ! acc\nt ( su* p>ticipant or         
b5efici>y are to be ex]cis$ ) respect to
 ! approval or disapproval ( any /ock   
sale2  7ii7 ! requirem5ts ( section     
#dji7;e77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf & clause 7i7 ( ?is subp>agraph  

%all be met us+ ! proc$ures describ$ 9  
section #dji7;e77#e7 ( ! ,int]nal       
,rev5ue ,code ( #aihf2  7iii7 unless !  
p>ties agree o!rwise1 ) respect to      
unallocat$ %>es1 ! indep5d5t tru/ee %all
 be direct$ to vote or t5d] su*         
unallocat$ %>es 9 ! same proportion z   
allocat$ %>es = :i* ! indep5d5t tru/ee  
has receiv$ vot+ or t5d] in/ructions f  
p>ticipants 9 ! employee /ock own]%ip   
plan2 &  7iv7 ) respect to allocat$ %>es
 t ! indep5d5t tru/ee does n receive    
vot+ or t5d] in/ructions f p>ticipants 9
 ! employee /ock own]%ip plan1 !        
indep5d5t tru/ee %all h vot+ discretion 
ov] su* %>es4  7#b7 ,vot+ discretion    
,no?+ 9 p>agraph 7#a77;,b7 %all limit ! 
ability ( an indep5d5t tru/ee to ex]cise
 vot+ discretion 9 accordance ) !       
fiduci>y obligations ( ! indep5d5t      
tru/ee "u ! ,employee ,retirem5t ,income
 ,security ,act ( #aigd 7#bi ,u4,s4,c4  
#ajja et seq474  7#c7 ,limitation ,!    
requirem5ts "u p>agraph 7#a7 %all apply 
only ) respect to ! p]iod dur+ :i* !    

employee equity inve/m5t company has an 
int]e/ 9 ! cov]$ small bus9ess conc]n4  
7m7 ,reports ,9 addition to ! report+   
requirem5ts 9 #caj7;b71 ea* employee    
equity inve/m5t company 7includ+ ea*    
,protege ,,eeic lic5s$ to op]ate z an   
employee equity inve/m5t company7 & ea* 
non-,,eeic company t has out/&+ lev]age 
receiv$ f ! facility %all submit to !   
,adm9i/rator an annual report1 :i* %all 
include1 = ! ye> cov]$ by ! report1 !   
foll[+ in=mation1 disaggregat$ by cov]$ 
inve/m5ts made "u subp>agraph 7,a7 &    
7,b7 ( section #ajc7ba73 7#a7 ,:e!r !   
cov]$ inve/m5t 0 made ) respect to an   
employee /ock own]%ip plan or eligible  
work]-own$ coop]ative4  7#b7 ,= an      
employee /ock own]%ip plan-- 7,a7 !     
effective date ( ! plan2  7,b7 ! numb] (
 active plan p>ticipants2  7,c7 ! numb] 
( employees ( ! cov]$ small bus9ess     
conc]n = :i* ! employee /ock own]%ip    
plan is e/abli%$2  7,d7 ! total value ( 
employ] securities1 z det]m9$ by an     
indep5d5t apprais] hir$ by ! indep5d5t  

tru/ee ( ! employee /ock own]%ip plan2  
7,e7 ! total plan assets2  7,f7 ! total 
contributions dur+ ! plan ye>2  7,g7 !  
total di/ributions dur+ ! plan ye>2     
7,h7 ! m$ian acc\nt asset balance2 &    
7,i7 demographic in=mation ( plan       
p>ticipants1 disaggregat$ by race1 g5d]1
 & ,/ate4  7#c7 ,= an eligible          
work]-own$ coop]ative-- 7,a7 ! numb] (  
memb]-own]s2  7,b7 ! numb] ( employees (
 ! cov]$ small bus9ess conc]n = :i* !   
eligible work]-own$ coop]ative is       
e/abli%$2  7,c7 ! total value ( employ] 
securities2  7,d7 ! aggregate assets (  
all memb]%ip acc\nts ( ! coop]ative2    
7,e7 ! m$ian memb]%ip acc\nt balance2 & 
7,f7 demographic in=mation ( memb]%ip   
base1 disaggregat$ by race1 g5d]1 &     
,/ate4  7n7 ,implem5tation mile/ones    
7#a7 ,9 g5]al ,n lat] ?an #ahj days aft]
 ! date ( enactm5t ( ?is section1 !     
,adm9i/rator %all beg9 accept+          
applications to be lic5s$ to p>ticipate 
9 ! facility z an employee equity       
inve/m5t company 7includ+ z a ,protege  

,,eeic74  7#b7 ,exclusion ( lev]age ,n  
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is section1 ! ,adm9i/rator %all beg9  
exclud+ f ! calculation ( out/&+        
lev]age1 z describ$ 9 section           
#cjc7;b77#b77;,f71 cov]$ inve/m5ts      
describ$ 9 clause 7iii7 ( su* section4  
7#c7 ,lic5se timel9e ,n lat] ?an #a ye> 
aft] ! date ( enactm5t ( ?is section1 ! 
,adm9i/rator %all approve ! fir/ tran*e 
( lic5ses to p>ticipate 9 ! facility z  
an employee equity inve/m5t company     
7includ+ z a ,protege ,,eeic7 ) respect 
to applicants t satisfy ! applicable    
eligibility crit]ia4  7o7 ,sunset  7#a7 
,def9ition ,9 ?is subsection1 ! t]m     
sunset date means ! fir/ day ( ! tw5tie?
 cal5d> ye> t beg9s aft] ! date on :i* !
 ,adm9i/rator approves ! fir/ lic5se to 
p>ticipate 9 ! facility z an employee   
equity inve/m5t company 7includ+ z a    
,protege ,,eeic74  7#b7 ,t]m9ation (    
au?ority ,on & aft] ! sunset date1 !    
,adm9i/rator may n lic5se an entity to  
p>ticipate 9 ! facility z an employee   

equity inve/m5t company 7includ+ z a    
,protege ,,eeic7 or select an entity to 
p>ticipate 9 ! facility z a non-,,eeic  
company4  7#c7 ,cont9u$ p>ticipation by 
exi/+ entities ,no?+ 9 p>agraph 7#b7    
%all be con/ru$ to prohibit-- 7,a7 an   
employee equity inve/m5t company f      
cont9u+ to draw lev]age on & aft] !     
sunset date t 0 committ$ to ! entity    
?r\gh ! facility be=e ! sunset date2 or 
7,b7 a non-,,eeic company f cont9u+ to  
receive an exclusion 9 ! calculation (  
out/&+ lev]age by ! ,adm9i/rator1 z     
describ$ 9 section #cjc7;b77#b77;,f71 = 
cov]$ inve/m5ts describ$ 9 clause 7iii7 
( su* section made to a cov]$ small     
bus9ess be=e ! sunset date4  7#d7       
,application ,! ,adm9i/rator %all n     
consid] p>agraph 7#b7 z a factor 9 !    
decision to lic5se an entity to         
p>ticipate 9 ! facility z an employee   
equity inve/m5t company 7includ+ z a    
,protege ,,eeic7 or to select an entity 
to p>ticipate 9 ! facility z a          
non-,,eeic company be=e ! sunset date4  

4  7c7 ,employee equity inve/m5t company
 proc$ures ,title ,,iii ( ! ,small      
,bus9ess ,inve/m5t ,act ( #aieh 7#ae    
,u4,s4,c4 #fha et seq47 is am5d$-- 7#a7 
9 section #cja7;c7 7#ae ,u4,s4,c4       
#fha7;c771 by /rik+ p>agraph 7#c7 &     
ins]t+ ! foll[+3  7#c7 ,matt]s consid]$ 
7,a7 ,9 g5]al ,9 review+ & process+ any 
application "u ?is subsection1 !        
,adm9i/rator-- 7i7 %all det]m9e :e!r--  
7,i7 ! applicant meets ! requirem5ts (  
subsections 7a7 & 7c7 ( section #cjb2 & 
7,,ii7 ! managem5t ( ! applicant is     
qualifi$ & has ! k1 exp]i5ce1 &         
capability necess>y to comply ) ?is     
,act2  7ii7 %all take into              
consid]ation-- 7,i7 ! ne$ = &           
availability ( f9anc+ = small bus9ess   
conc]ns 9 ! geographic area 9 :i* !     
applicant is to comm5ce bus9ess2  7,,ii7
 ! g5]al bus9ess reputation ( ! own]s & 
managem5t ( ! applicant2 &  7,,iii7 !   
probability ( successful op]ations ( !  
applicant1 includ+ adequate pr(itability
 & f9ancial s\ndness2  7iii7 %all n take

 into consid]ation any project$ %ortage 
or unavailability ( lev]age2 &  7iv7    
%all give fir/ priority to an applicant 
t is locat$ 9 an und]lic5s$ ,/ate ) bel[
 m$ian f9anc+1 z det]m9$ by !           
,adm9i/rator4  7,b7 ,additional matt]s  
consid]$ = employee equity inve/m5t     
companies  7i7 ,inve/m5t track record   
,except z provid$ 9 clause 7ii71 an     
applicant = a lic5se to op]ate z an     
employee equity inve/m5t company %all   
submit to ! ,adm9i/rator pro( t !       
manag]s ( ! applicant h a track record (
 manag+ inve/m5ts1 includ+ /ructur$     
inve/m5ts1 realiz$ or unrealiz$1 9 an   
employee /ock own]%ip plan or eligible  
work]-own$ coop]ative4  7ii7 ,advisory  
requirem5t ,an applicant t does n h an  
inve/m5t track record describ$ 9 clause 
7i7 or t is a ,protege ,,eeic %all      
submit to ! ,adm9i/rator evid5ce t !    
applicant has reta9$ or w reta9 a legal1
 acc\nt+1 or f9ancial advisory firm ) at
 lea/ #e ye>s ( exp]i5ce 9 /ructur+     
employee /ock own]%ip plans or eligible 

work]-own$ coop]atives4  7iii7          
,limitation ,! ,adm9i/rator may n reject
 an applicant = a lic5se to op]ate z an 
employee equity inve/m5t company solely 
because ! applicant lacks a suffici5t   
track record 9 realiz$ inve/m5ts if !   
applicant demon/rates an o!rwise        
successful inve/m5t track record t      
includes unrealiz$ cov]$ inve/m5ts4  2 &
  7#b7 9 section #cjc7;b77#b7 7#ae      
,u4,s4,c4 #fhc7;b77#b77-- 7,a7 9        
subp>agraph 7,a71 9 ! matt] prec$+      
clause 7i71 by /rik+ ,! maximum & ins]t+
 ,except z provid$ o!rwise 9 ?is        
p>agraph1 ! maximum2 &  7,b7 by add+ at 
! end ! foll[+--  7,e7 ,employee equity 
inve/m5t companies  7i7 ,9 g5]al ,except
 z provid$ 9 subp>agraph 7,g71 ! maximum
 am\nt ( out/&+ lev]age made available  
to any #a employee equity inve/m5t      
company may n exce$ ! less] (-- 7,i7    
#ajj p]c5t ( ! private capital ( su*    
company2 or  7,,ii7 #cej1jjj1jjj4  7ii7 
,multiple lic5ses "u common control ,!  
maximum am\nt ( out/&+ lev]age made     

available to #b or m employee equity    
inve/m5t companies t are commonly       
controll$ 7z det]m9$ by ! ,adm9i/rator7 
& n "u capital impairm5t may n exce$    
#gjj1jjj1jjj4  7,f7 ,non-,,eeic company 
employee own]%ip inve/m5ts  7i7 ,9 g5]al
 ,a non-,,eeic company may access       
lev]age f ! facility e/abli%$ "u section
 #cba 9 addition to any lev]age su*     
non-,,eeic company is o!rwise eligible  
to receive solely = ! purpose describ$ 9
 clause 7ii7 & subject to ! limitation  
"u clause 7iv74  7ii7 ,purpose ,!       
purpose describ$ 9 ?is clause is = !    
purpose ( mak+ cov]$ inve/m5ts describ$ 
9 section #ajc7ba77;,b7 7exclud+ syn!tic
 equity74  7iii7 ,out/&+ lev]age        
,subject to ! limitation "u clause 7iv71
 9 calculat+ ! out/&+ lev]age ( a       
non-,,eeic company = purposes (         
subp>agraphs 7,a77ii7 & 7,b71 !         
,adm9i/rator %all exclude ! am\nt (     
lev]age out/&+ to cov]$ small bus9ess   
conc]ns = a cov]$ inve/m5t describ$ 9   
section #ajc7ba77;,b7 7exclud+ syn!tic  

equity7 made by su* non-,,eeic company4 
7iv7 ,limitation ,! am\nt ( lev]age     
provid$ "u clause 7i7 t is exclud$ "u   
clause 7iii7 may n exce$ #ej1jjj1jjj4   
7,g7 ,protege ,e,e,i,cs ,! maximum am\nt
 ( out/&+ lev]age made available "u !   
facility e/abli%$ "u section #cba to any
 #a ,protege ,,eeic may n to exce$ !    
less] (-- 7i7 #ajj p]c5t ( ! private    
capital ( ! ,protege ,,eeic2 or  7ii7   
#ajj1jjj1jjj4  4  7d7 ,con=m+ am5dm5t   
,section #cjh7;g7 ( ! ,small ,bus9ess   
,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4   
#fhg7;g77 is am5d$ by add+ at ! end !   
foll[+3  7#d7 ,9 its annual report = !  
ye> end+ on ,decemb] #ca1 #bjbc1 & 9 ea*
 succe$+ annual report made pursuant to 
section #aj7;a7 ( ! ,small ,bus9ess     
,act1 ! ,adm9i/ration %all include full 
& detail$ aggregate data reg>d+-- 7,a7  
employee /ock own]%ip plans creat$ by an
 employee equity inve/m5t company1      
includ+-- 7i7 ! total numb] ( active    
plan p>ticipants2  7ii7 ! total numb] ( 
employees ( ! cov]$ small bus9ess       

conc]ns ) su* employee /ock own]%ip     
plans2  7iii7 ! total value ( employ]   
securities1 z det]m9$ by ! indep5d5t    
apprais]s hir$ by ! indep5d5t tru/ee (  
ea* employee /ock own]%ip plan2  7iv7 ! 
total plan assets2  7v7 ! total         
contributions dur+ ! plan ye>2  7vi7 !  
total di/ributions dur+ ! plan ye>2     
7vii7 ! m$ian acc\nt asset balance2 &   
7viii7 demographic in=mation ( plan     
p>ticipants1 disaggregat$ by race1 g5d]1
 ,/ate2  7,b7 eligible work]-own$       
coop]atives creat$ by employee equity   
inve/m5t companies1 includ+-- 7i7 !     
numb] ( memb]-own]s2  7ii7 ! total numb]
 ( employees ( ! cov]$ small bus9ess    
conc]n ) su* eligible work]-own$        
coop]atives2  7iii7 ! total value (     
employ] securities2  7iv7 ! assets ( all
 memb]%ip acc\nts2  7v7 ! m$ian memb]%ip
 acc\nt balance2 &  7vi7 demographic    
in=mation ( memb]%ip base1 disaggregat$ 
by race1 g5d]1 & ,/ate2 &  7,c7         
non-,,eeic companies t receiv$ lev]age f
 ! facility1 includ+-- 7i7 ! total am\nt

 ( su* lev]age exclud$ by ! ,adm9i/rator
 pursuant to section #cba7;e77#c77;,c72 
7ii7 ! numb] ( employee /ock own]%ip    
plans & eligible work]-own$ coop]atives 
t receiv$ capital f a non-,,eeic company
 dur+ ! ye> cov]$ by ! report2 &  7iii7 
! geographic location ( ea* employee    
/ock own]%ip plan & eligible work]-own$ 
coop]ative describ$ 9 clause 7ii74  4   
#c4 ,protege ,,eeic program ,"p ,a (    
title ,,iii ( ! ,small ,bus9ess         
,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4   
#fha et seq471 z am5d$ by section #b1 is
 fur!r am5d$ by add+ at ! end ! foll[+3 
#cbb4 ,protege ,,eeic program  7a7      
,e/abli%m5t ,! ,adm9i/rator %all e/abli%
 a program to be kn[n z ! ,protege      
,,eeic ,program "u :i* a manag] )       
sub/antial exp]i5ce 9 op]at+ small      
bus9ess inve/m5t companies may ent] into
 a writt5 agreem5t approv$ by !         
,adm9i/rator to provide guidance &      
assi/ance to a ,protege ,,eeic ) respect
 to-- 7#a7 apply+ = a lic5se = !        
,protege ,,eeic to op]ate z an employee 

equity inve/m5t company2 &  7#b7        
managem5t ( ! employee equity inve/m5t  
company aft] lic5sure4  7b7 ,application
 ,aft] ent]+ into a writt5 agreem5t     
describ$ 9 subsection 7a71 ! ,protege   
,,eeic %all apply = a lic5se "u section 
#cja4  7c7 ,selection ,! ,adm9i/rator   
may grant a lic5se to a ,protege ,,eeic 
to op]ate z an employee equity inve/m5t 
company "u section #cja bas$ on !       
inve/m5t track record ( "o or m ( !     
manag]s t h ent]$ into a writt5 agreem5t
 describ$ 9 subsection 7a7 ) ! applicant
 ,protege ,,eeic4  7d7 ,requirem5ts =   
manag]s ,if a manag] ent]s into a writt5
 agreem5t describ$ "u subsection 7a7--  
7#a7 ! manag] may hold a m9ority        
f9ancial int]e/ 9 ! employee equity     
inve/m5t company t is to be manag$ by ! 
,protege ,,eeic2  7#b7 ! o!rwise        
applicable maximum am\nt ( out/&+       
lev]age t may be made available to any  
"o lic5s$ company ( ! manag] "u section 
#cjc7;b77#b77;,a7 %all be increas$ by   
#ag1ejj1jjj2 &  7#c7 ! o!rwise          

applicable maximum am\nt ( out/&+       
lev]age t may be made available to any  
two or m lic5s$ companies t are commonly
 controll$ by ! manag] "u section       
#cjc7;b77#b77;,b7 %all be increas$ by   
#ce1jjj1jjj4  4  #d4 ,(fice ( ,employee 
,own]%ip ,"p ,a ( title ,,iii ( ! ,small
 ,bus9ess ,inve/m5t ,act ( #aieh 7#ae   
,u4,s4,c4 #fha et4 seq471 z am5d$ by    
section #c1 is fur!r am5d$ by add+ at ! 
end ! foll[+3  #cbc4 ,(fice ( ,employee 
,own]%ip  7a7 ,e/abli%m5t ,!re is       
e/abli%$ 9 ! ,adm9i/ration an ,(fice (  
,employee ,own]%ip 79 ?is section ref]r$
 to z ! ,(fice7 :i* %all be responsible 
=-- 7#a7 develop+ exp]tise 9 employee   
/ock own]%ip plans & eligible work]-own$
 coop]atives2 &  7#b7 assi/+ small      
bus9ess conc]ns 9 processes relat+ to a 
sale ( su* conc]ns to an employee /ock  
own]%ip plan or eligible work]-own$     
coop]ative4  7b7 ,duties ,! ,(fice      
%all-- 7#a7 provide outrea* &           
educational mat]ials to small bus9ess   
inve/m5t companies ab\t ! facility      

e/abli%$ "u section #cba2  7#b7 ma9ta9 &
 publi% a li/ ( legal1 acc\nt+1 or      
f9ancial advisory firms ) at lea/ #e    
ye>s ( exp]i5ce 9 /ructur+ employee /ock
 own]%ip plans or eligible work]-own$   
coop]atives2  7#c7 e/abli% a ,small     
,bus9ess ,employee ,own]%ip &           
,coop]atives ,promotion ,program to (f] 
te*nical assi/ance & tra9+ to           
employee-own$ bus9ess conc]ns 7z def9$ 9
 section #ba7;c77#c77,u7 ( ! ,small     
,bus9ess ,act 7#ae ,u4,s4,c4            
#fdh7;c77#c77,u77 on ! transition to    
employee own]%ip2  7#d7 coord9ate )     
small bus9ess developm5t c5t]s on       
implem5t+ ! requirem5ts relat+ to       
employee-own$ bus9ess conc]ns "u section
 #ba7;c77#c7 ( ! ,small ,bus9ess ,act   
7#ae ,u4,s4,c4 #fdh7;c77#c772 &  7#e7   
coord9ate ) lead]s 9 ! field1 z det]m9$ 
by ! ,adm9i/rator1 to develop outrea* & 
educational mat]ials on employee own]%ip
 9 multiple languages4  4  #e4 ,modify+ 
unconditional own]%ip & control         
requirem5ts = c]ta9 employee-own$ small 

bus9ess conc]ns  7a7 ,report on own]%ip 
& control ?r\gh an employee /ock own]%ip
 plan or eligible work]-,own$ coop]ative
 relat+ to set-,aside procurem5t  7#a7  
,def9itions ,9 ?is subsection-- 7,a7 !  
t]m ,adm9i/rator means ! ,adm9i/rator ( 
! ,small ,bus9ess ,adm9i/ration2  7,b7 !
 t]m eligible work]-own$ coop]ative has 
! mean+ giv5 t t]m 9 section #ajdb7;c7 (
 ! ,int]nal ,rev5ue ,code ( #aihf2 &    
7,c7 ! t]m employee /ock own]%ip plan   
has ! mean+ giv5 t t]m 9 section        
#dige7;e7 ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7#b7 ,s5se ( ,congress ,x is !  
s5se ( ,congress t-- 7,a7 employee /ock 
own]%ip plans & eligible work]-own$     
coop]atives h unique own]%ip /ructures t
 create b>ri]s to access+ set-aside     
procurem5t programs due to unconditional
 own]%ip & control requirem5ts2 &  7,b7 
! own]%ip /ructures ( an employee /ock  
own]%ip plan or an eligible work]-own$  
coop]ative %\ld n prev5t an o!rwise     
eligible entity f access+ set-aside     
procurem5t programs4  7#c7 ,/udy &      

report  7,a7 ,/udy ,! ,adm9i/rator1 9   
coord9ation ) /akehold]s1 includ+       
wom5-own$ small bus9ess ?ird-p>ty       
c]tifi]s & relevant ,f$]al ag5cies1 %all
 /udy & recomm5d alt]natives to         
unconditional own]%ip & control         
requirem5ts = employee /ock own]%ip     
plans & eligible work]-own$ coop]atives 
t w\ld enable access to set-aside       
procurem5t programs4  7,b7 ,report ,n   
lat] ?an #ahj days aft] ! date (        
enactm5t ( ?is ,act1 ! ,adm9i/rator %all
 submit to ,congress ! recomm5dations   
develop$ "u subp>agraph 7,a7 & a plan to
 implem5t ! recomm5dations = all        
set-aside procurem5t programs1 includ+  
id5tify+ any applicable /atutory *anges 
necess>y to implem5t su* recomm5dations4
  7b7 ,rulemak+ ,n lat] ?an #ahj days   
aft] ! submission ( ! report requir$ "u 
subsection 7a77#c77;,b71 ! ,adm9i/rator 
( ! ,small ,bus9ess ,adm9i/ration %all  
issue or revise any applicable rules to 
c>ry out ! recomm5dations =m$ 9 !       
report4  7c7 ,grace p]iod  7#a7 ,small  

bus9ess conc]ns own$ & controll$ by     
socially & economically disadvantag$    
individuals ,section #h7;a7 ( ! ,small  
,bus9ess ,act 7#ae ,u4,s4,c4 #fcg7;a77  
is am5d$ by add+ at ! end ! foll[+3     
7#bb7 ,conc]ns own$ by employee /ock    
own]%ip plans or eligible work]-own$    
coop]atives  7,a7 ,9 g5]al ,= ! purposes
 ( det]m9+ own]%ip & control ( a conc]n 
"u ?is subsection = aw>d ( a contract   
?r\gh a competition re/rict$ to small   
bus9ess conc]ns own$ & controll$ by     
socially & economically disadvantag$    
individuals1 any int]e/ 9 su* conc]n    
held by an employee /ock own]%ip plan or
 an eligible work]-own$ coop]ative %all 
be treat$ 9 ! same mann] z an int]e/    
held by ! socially & economically       
disadvantag$ individuals ^u :om         
eligibility is bas$ if-- 7i7 su* conc]n 
0 a socially & economically disadvantag$
 small bus9ess conc]n prior to ! sale to
 an employee /ock own]%ip plan or an    
eligible work]-own$ coop]ative2 &  7ii7 
! *ief corporate (fic] & a majority ( ! 

bo>d ( directors ( su* conc]n are       
socially & economically disadvantag$    
individuals4  7,b7 ,applicability ,!    
requirem5ts ( subp>agraph 7,a7 %all     
apply = ! #b-ye> p]iod beg9n+ on ! date 
on :i* ! majority ( ! /ock ( su* conc]n 
0 acquir$ by an employee /ock own]%ip   
plan or eligible work]-own$ coop]ative4 
4  7d7 ,small bus9ess conc]ns own$ &    
controll$ by wom5 ,section #h7m7 ( !    
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fcg7m77 is am5d$ by add+ at ! end !    
foll[+3  7#i7 ,conc]ns own$ by employee 
/ock own]%ip plans or eligible          
work]-own$ coop]atives  7,a7 ,9 g5]al   
,not)/&+ any o!r provision ( law1 = !   
purposes ( det]m9+ own]%ip & control ( a
 conc]n "u ?is subsection = aw>d ( a    
contract ?r\gh a competition re/rict$ to
 small bus9ess conc]ns own$ & controll$ 
by wom51 any int]e/ 9 su* conc]n held by
 an employee /ock own]%ip plan or an    
eligible work]-own$ coop]ative1 %all be 
treat$ 9 ! same mann] z an int]e/ held  
by ! wom5 ^u :om eligibility is bas$    

if-- 7i7 su* conc]n 0 a small bus9ess   
conc]n own$ & controll$ by wom5 prior to
 ! sale to an employee /ock own]%ip plan
 or an eligible work]-own$ coop]ative2 &
  7ii7 ! *ief corporate (fic] & a       
majority ( ! bo>d ( directors ( su*     
conc]n are wom54  7,b7 ,applicability ,!
 requirem5ts ( subp>agraph 7,a7 %all    
apply = ! #b-ye> p]iod beg9n+ on ! date 
on :i* ! majority ( ! /ock ( su* conc]n 
0 acquir$ by an employee /ock own]%ip   
plan or eligible work]-own$ coop]ative4 
4  7e7 ,small bus9ess conc]ns own$ &    
controll$ by s]vice-,disabl$ vet]ans    
,section #cf ( ! ,small ,bus9ess ,act   
7#ae ,u4,s4,c4 #feg;f7 by add+ at ! end 
! foll[+3  7j7 ,conc]ns own$ by employee
 /ock own]%ip plans or eligible         
work]-,own$ coop]atives  7#a7 ,9 g5]al  
,not)/&+ any o!r provision ( law1 = !   
purposes ( det]m9+ own]%ip & control ( a
 conc]n "u ?is section = aw>d ( a       
contract ?r\gh a competition re/rict$ to
 small bus9ess conc]ns own$ & controll$ 
by s]vice-disabl$ vet]ans1 any int]e/ 9 

su* conc]n held by an employee /ock     
own]%ip plan or an eligible work]-own$  
coop]ative1 %all be treat$ 9 ! same     
mann] z an int]e/ held by !             
s]vice-disabl$ vet]ans ^u :om           
eligibility is bas$ if-- 7,a7 su* conc]n
 0 a small bus9ess conc]n own$ &        
controll$ by s]vice-disabl$ vet]ans     
prior to ! sale to an employee /ock     
own]%ip plan or an eligible work]-own$  
coop]ative2 &  7,b7 ! *ief corporate    
(fic] & a majority ( ! bo>d ( directors 
( su* conc]n are s]vice-disabl$ vet]ans4
  7#b7 ,applicability ,! requirem5ts (  
p>agraph 7#a7 %all apply = ! #b-ye>     
p]iod beg9n+ on ! date on :i* ! majority
 ( ! /ock ( su* conc]n 0 acquir$ by an  
employee /ock own]%ip plan or eligible  
work]-own$ coop]ative4  4  7f7          
,def9itions ,section #c ( ! ,small      
,bus9ess ,act is am5d$ by add+ at ! end 
! foll[+3  7gg7 ,employee /ock own]%ip  
plan ,9 ?is ,act1 ! t]m employee /ock   
own]%ip plan has ! mean+ giv5 t t]m 9   
section #dige7;e77#g7 ( ! ,int]nal      

,rev5ue ,code ( #aihf 7#bf ,u4,s4,c4    
#dige7;e77#g774  7hh7 ,eligible         
work]-,own$ coop]ative ,9 ?is ,act1 !   
t]m eligible work]-own$ coop]ative has !
 mean+ giv5 t t]m 9 section #ajdb7;c7 ( 
! ,int]nal ,rev5ue ,code ( #aihf4  4