S.Amdt. 3815

SA 3815. Mr. BANKS submitted an amendment intended to be proposed by
him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle A of title IX, add the following:

SEC. 909. INCLUSION OF EQUITY INVESTMENTS IN PILOT PROGRAM OF
OFFICE OF STRATEGIC CAPITAL ON CAPITAL
ASSISTANCE TO SUPPORT INVESTMENT IN INDUSTRIAL
BASE.

Section 149 of title 10, United States Code, is amended--
(1) in subsection (e)--
(A) in paragraph (3)--
(i) by amending subparagraph (A)(ii)(I)(bb) to read as
follows:
``(bb) The Director may waive the requirement under item
(aa) with respect to--

``(AA) an investment if the investment is determined by the
Secretary of Defense to be vital to the national security of
the United States; or
``(BB) loans that includes an equity feature, if the
Director reasonably believes the rate of return on the
portfolio of such loans will exceed the rate of return on
investment of a loan at the yield on marketable securities of
a similar maturity to the maturity of the loan on the date of
execution of the loan agreement.''; and

(ii) by adding at the end the following new subparagraph:
``(D)(i) The Director may support an eligible investment
under this subsection with funds or use other mechanisms for
the purpose of purchasing, and may make and fund commitments
to purchase, invest in, make pledges in respect of, or
otherwise acquire, equity of an eligible entity receiving
support for the eligible investment or any of its parent or
subsidiary entities, including as a limited partner or other
investor in investment funds, upon such terms and conditions
as the Director may determine.
``(ii) The Director shall develop criteria, taking into
consideration the national security and economic interests of
the United States, pursuant to which the Office may hold,
sell, or otherwise liquidate support for an investment made
under clause (i).
``(iii) Solely for the purposes of purchasing equity
securities under this subparagraph, the Office shall be
treated as--
``(I) a qualified purchaser, as defined in section 2(a)(51)
of the Investment Company Act of 1940 (15 U.S.C. 80a-
2(a)(51)); and
``(II) an accredited investor, as defined in Rule 501 of
Regulation D under the Securities Act of 1933 (15 U.S.C. 77a
et seq.).''; and
(B) in paragraph (8), by striking ``a use'' and all that
follows through ``subsection'' and inserting ``the formal
approval of the use of any capital assistance under this
subsection''; and
(2) by amending subsection (f)(1) to read as follows:
``(1) The term `capital assistance' means--
``(A) a loan, loan guarantee, or technical assistance; or
``(B) the purchase of or investment in equity (including
options, warrants, or other financing in a security with
subordination or nonamortization characteristics that the
Director determines to be substantially similar to equity
financing).''.
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