,,ii #aahth ,,congress #ast ,session ,s4 #df ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd 7legislative day1 ,january #c71 #bjbc,mr4 ,rubio 7for himself and ,mr4 ,risch7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to establish a small business and domestic production recovery investment facility1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,innovation and ,manufacturing ,act4 #b4 ,small business investment company program 7a7 ,in general ,part ,a of title ,,iii of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha et seq47 is amended-- 7#a7 in section #cjb7;a7 7#ae ,u4,s4,c4 #fhb7;a77-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a71 by striking or at the end2 7ii7 in subparagraph 7,b71 by striking the period at the end and inserting 2 or2 and 7iii7 by adding at the end the following3 7,c7 #bj1jjj1jjj1 adjusted every #e years for inflation1 with respect to each licensee authorized or seeking authority to sell bonds to the ,administration as a participating investment company under section #cba4 2 and 7#b7 by adding at the end the following3 #cba4 ,small business and domestic production recovery investment facility 7a7 ,definitions ,in this section3 7#a7 ,eligible small business concern ,the term eligible small business concern-- 7,a7 means a small business concern that is a manufacturing business that is assigned a ,north ,american ,industry ,classification ,system code beginning with #ca1 #cb1 or #cc at the time at which the small business concern receives an investment from a participating investment company under the facility2 and 7,b7 does not include an entity described in section #g7;a77#cg77;,a77iv77,,iii7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cg77;,a77iv77,,iii774 7#b7 ,facility ,the term facility means the facility established under subsection 7b74 7#c7 ,fund ,the term ,fund means the fund established under subsection 7h74 7#d7 ,participating investment company ,the term participating investment company means a small business investment company approved under subsection 7d7 to participate in the facility4 7#e7 ,protg investment company ,the term protg investment company means a small business investment company that-- 7,a7 is majority managed by new1 inexperienced1 or otherwise underrepresented fund managers2 and 7,b7 elects and is selected by the ,administration to participate in the pathway-protg program under subsection 7g74 7#f7 ,small business concern ,the term small business concern has the meaning given the term in section #c7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;a774 7b7 ,establishment 7#a7 ,facility ,the ,administrator shall establish and carry out a facility to increase resiliency in the manufacturing supply chain of eligible small business concerns by providing financial assistance to participating investment companies that facilitate equity financings to eligible small business concerns in accordance with this section4 7#b7 ,administration of facility ,the facility shall be administered by the ,administrator acting through the ,associate ,administrator described in section #bja4 7c7 ,applications 7#a7 ,in general ,any small business investment company may submit to the ,administrator an application to participate in the facility4 7#b7 ,requirements for application ,an application to participate in the facility shall include the following3 7,a7 ,a business plan describing how the applicant intends to make successful equity investments in eligible small business concerns4 7,b7 ,information regarding the relevant investment qualifications and backgrounds of the individuals responsible for the management of the applicant4 7,c7 ,a description of the extent to which the applicant meets the selection criteria under subsection 7d77#b74 7#c7 ,exceptions to application for new licensees ,not later than #ij days after the date of enactment of this section1 the ,administrator shall reduce requirements for applicants applying to operate as a participating investment company under this section in order to encourage the participation of new small business investment companies in the facility under this section1 which may include the requirements established under part #ajg of title #ac1 ,code of ,federal ,regulations1 or any successor regulation1 relating to-- 7,a7 the approval of initial management expenses2 7,b7 the management ownership diversity requirement2 7,c7 the disclosure of general compensatory practices and fee structures2 or 7,d7 any other requirement that the ,administrator determines to be an obstacle to achieving the purposes described in this paragraph4 7d7 ,selection of participating investment companies 7#a7 ,determination 7,a7 ,in general ,except as provided in paragraph 7#c71 not later than #fj days after the date on which the ,administrator receives an application under subsection 7c71 the ,administrator shall-- 7i7 make a final determination to approve or disapprove such applicant to participate in the facility2 and 7ii7 transmit the determination to the applicant in writing4 7,b7 ,commitment amount ,except as provided in paragraph 7#c71 at the time of approval of an applicant1 the ,administrator shall make a determination of the amount of the commitment that may be awarded to the applicant under this section4 7#b7 ,selection criteria ,in making a determination under paragraph 7#a71 the ,administrator shall consider-- 7,a7 the probability that the investment strategy of the applicant will successfully repay any financial assistance provided by the ,administration1 including the probability of a return significantly in excess thereof2 7,b7 the probability that the investments made by the applicant will-- 7i7 provide capital to eligible small business concerns2 or 7ii7 create or preserve jobs in the ,united ,states2 7,c7 the probability that the applicant will meet the objectives in the business plan of the applicant1 including the financial goals1 and1 if applicable1 the pathway-protg program in accordance with subsection 7g72 and 7,d7 the probability that the applicant will assist eligible small business concerns in achieving profitability4 7#c7 ,approval of participating investment companies 7,a7 ,provisional approval 7i7 ,in general ,notwithstanding paragraph 7#a71 with respect to an application submitted by an applicant to operate as a participating investment company under this section1 the ,administrator may provide provisional approval for the applicant in lieu of a final determination of approval and determination of the amount of the commitment under that paragraph4 7ii7 ,purpose ,the purpose of a provisional approval under clause 7i7 is to-- 7,i7 encourage applications from investment companies with an investment mandate from the committed private market capital of the investment company that does not conform to the requirements described in this section at the time of application2 7,,ii7 allow the applicant to more effectively raise capital commitments in the private markets by referencing the intent of the ,administrator to award the applicant a commitment2 and 7,,iii7 allow the applicant to more precisely request the desired amount of commitment pending the securing of capital from private market investors4 7iii7 ,limit on period of the time ,the period between a provisional approval under clause 7i7 and the final determination of approval under paragraph 7#a7 shall not exceed #ab months4 7e7 ,commitments and ,,sbic bonds 7#a7 ,in general ,the ,administrator may1 out of amounts available in the ,fund1 purchase or commit to purchase from a participating investment company #a or more accruing bonds that include equity features as described in this subsection4 7#b7 ,bond terms ,a bond purchased by the ,administrator from a participating investment company under this subsection shall have the following terms and conditions3 7,a7 ,term and interest 7i7 ,in general ,the bond shall be issued for a term of not less than #ae years and shall bear interest at a rate determined by the ,administrator of not more than #b percent4 7ii7 ,accrual of interest ,interest on the bond shall accrue and shall be payable in accordance with subparagraph 7,d74 7iii7 ,prepayment ,the bond shall be prepayable without penalty after the end of the #a-year period beginning on the date on which the bond was purchased4 7,b7 ,profits 7i7 ,in general ,the ,administration shall be entitled to receive a share of the profits net of any profit sharing performance compensation of the participating investment company equal to the quotient obtained by dividing-- 7,i7 one-third of the commitment that the participating investment company is approved for under subsection 7d72 by 7,,ii7 the commitment approved under subsection 7d7 plus the regulatory capital of the participating investment company at the time of approval under that subsection4 7ii7 ,determination of percentage ,the share to which the ,administration is entitled under clause 7i7-- 7,i7 shall be determined at the time of approval under subsection 7d72 and 7,,ii7 without the approval of the ,administration1 shall not be revised1 including to reflect subsequent distributions of profits1 returns of capital1 or repayments of bonds1 or otherwise4 7,c7 ,profit sharing performance compensation 7i7 ,receipt by ,administration ,the ,administration shall receive a share of profits of not more than #b percent1 which shall be deposited into the ,fund and be available to make commitments under this subsection4 7ii7 ,receipt by managers ,the managers of the participating investment company may receive a maximum profit sharing performance compensation of #be percent minus the share of profits paid to the ,administration under clause 7i74 7,d7 ,prohibition on distributions ,no distributions on capital1 including profit distributions1 shall be made by the participating investment company to the investors or managers of the participating investment company until the ,administration has received payment of all accrued interest on the bond committed under this section4 7,e7 ,repayment of principal ,except as described in subparagraph 7,f71 repayments of principal of the bond of a participating investment company shall be-- 7i7 made at the same time as returns of private capital2 and 7ii7 in amounts equal to the pro rata share of the ,administration of the total amount being repaid or returned at such time4 7,f7 ,liquidation or default ,upon any liquidation event or default1 as defined by the ,administration1 any unpaid principal or accrued interest on the bond shall-- 7i7 have a priority over all equity of the participating investment company2 and 7ii7 be paid before any return of equity or any other distributions to the investors or managers of the participating investment company4 7#c7 ,amount of commitments and purchases 7,a7 ,maximum amount ,the maximum amount of outstanding bonds and commitments to purchase bonds for any participating investment company under the facility shall be the lesser of-- 7i7 twice the amount of the regulatory capital of the participating investment company2 or 7ii7 #bjj1jjj1jjj4 7#d7 ,commitment process ,commitments by the ,administration to purchase bonds under the facility shall remain available to be sold by a participating investment company until the end of the fourth fiscal year following the year in which the commitment is made1 subject to review and approval by the ,administration based on regulatory compliance1 financial status1 change in management1 deviation from business plan1 and such other limitations as may be determined by the ,administration by regulation or otherwise4 7#e7 ,commitment conditions 7,a7 ,in general ,as a condition of receiving a commitment under the facility1 not less than #ej percent of amounts invested by the participating investment company shall be invested in eligible small business concerns4 7,b7 ,examinations ,in addition to the matters set forth in section #caj7;c71 the ,administration shall examine each participating investment company in such detail so as to determine whether the participating investment company has complied with the requirements under this subsection4 7f7 ,distributions and fees 7#a7 ,distribution requirements 7,a7 ,distributions ,as a condition of receiving a commitment under the facility1 a participating investment company shall make all distributions to the ,administrator in the same form and in a manner as are made to investors1 or otherwise at a time and in a manner consistent with regulations or policies of the ,administration4 7,b7 ,allocations ,a participating investment company shall make allocations of income1 gain1 loss1 deduction1 and credit to the ,administrator with respect to any outstanding bonds as if the ,administrator were an investor4 7#b7 ,fees ,the ,administrator may not charge fees for participating investment companies other than examination fees that are consistent with the license of the participating investment company4 7#c7 ,bifurcation ,losses on bonds issued by participating investment companies shall not be offset by fees or any other charges on debenture small business investment companies4 7g7 ,protg program ,the ,administrator shall establish a pathway-protg program in which a protg investment company may receive technical assistance and program support from a participating investment company on a voluntary basis and without penalty for non-participation4 7h7 ,loss limiting fund 7#a7 ,in general ,there is established in the ,treasury a fund for making commitments and purchasing bonds with equity features under the facility and receiving capital returned by participating investment companies4 7#b7 ,use of funds ,amounts appropriated to the ,fund or deposited in the ,fund under paragraph 7#c7 shall be available to the ,administrator1 without further appropriation1 for making commitments and purchasing bonds under the facility and expenses and payments1 excluding administrative expenses1 relating to the operations of the ,administrator under the facility4 7#c7 ,depositing of amounts 7,a7 ,in general ,all amounts received by the ,administrator from a participating investment company relating to the facility1 including any moneys1 property1 or assets derived by the ,administrator from operations in connection with the facility1 shall be deposited in the ,fund4 7,b7 ,period of availability ,amounts deposited under subparagraph 7,a7 shall remain available until expended4 7i7 ,application of other sections ,to the extent not inconsistent with requirements under this section1 the ,administrator may apply sections #cji1 #caa1 #cab1 #cac1 and #cad to activities under this section and an officer1 director1 employee1 agent1 or other participant in a participating investment company shall be subject to the requirements under such sections4 7j7 ,authorization of appropriations ,there is authorized to be appropriated for the first fiscal year beginning after the date of enactment of this part #aj1jjj1jjj1jjj to carry out the facility4 ,amounts appropriated pursuant to this subsection shall remain available until the end of the second fiscal year beginning after the date of enactment of this section4 4 7b7 ,approval of bank-,owned1 non-,leveraged applicants ,section #cja7;c77#b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha7;c77#b77 is amended-- 7#a7 in subparagraph 7,b71 in the matter preceding clause 7i71 by striking ,within and inserting ,except as provided in subparagraph 7,c71 within2 and 7#b7 by adding at the end the following3 7,c7 ,exception for bank-owned1 non-leveraged applicants ,notwithstanding subparagraph 7,b71 not later than #de days after the date on which the ,administrator receives a completed application submitted by a bank-owned1 non-leveraged applicant in accordance with this subsection and in accordance with such requirements as the ,administrator may prescribe by regulation1 the ,administrator shall-- 7i7 review the application in its entirety2 and 7ii7 7,i7 approve the application and issue a license for such operation to the applicant if the requirements of this section are satisfied2 or 7,,ii7 disapprove the application and notify the applicant in writing of the disapproval4 4 7c7 ,electronic submissions ,part ,a of title ,,iii of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha et seq471 as amended by subsection 7a7 of this section1 is amended by adding at the end the following3 #cbb4 ,electronic submissions ,the ,administration shall permit any document submitted under this title1 or pursuant to a regulation carrying out this title1 to be submitted electronically1 including by permitting an electronic signature for any signature that is required on such a document4 4