IIB
118th CONGRESS
2d Session
H. R. 5333
IN THE SENATE OF THE UNITED STATES
April 30, 2024
Received; read twice and referred to the Committee on Small Business and Entrepreneurship
AN ACT
To amend the Small Business Investment Act of 1958 to exclude from the limit on leverage certain amounts invested in smaller enterprises located in rural or low-income areas and small businesses in critical technology areas, and for other purposes.
Short title
This Act may be cited as the Investing in All of America Act of 2023
.
SBIC maximum leverage exclusion
Definitions
Section 103(9) of the Small Business Investment Act of 1958 (15 U.S.C. 662(9)) is amended—
in subparagraph (A)(ii), by striking and
at the end;
in subparagraph (B)(iii)—
in subclause (I), by striking established prior to October 1, 1987
;
in subclause (II)—
by striking or
and inserting ,
; and
by inserting , or a foundation, endowment, or trust of a college or university
after pension plan
; and
in subclause (III), by striking the semicolon at the end and inserting ; and
; and
by adding at the end the following new subparagraph:
does not include any funds obtained directly or indirectly from any Federal, State or local government or any government agency or instrumentality, except for funds described in subclauses (I) through (III) of subparagraph (B)(iii), for the purpose of approval by the Administrator of any request for leverage.
.
In general
Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended—
in subparagraph (A)(i), by striking 300
and inserting 200
;
in subparagraph (C)—
in the heading—
by inserting or rural
after low-income
; and
by inserting or critical technology areas
after geographic areas
;
in clause (i)—
by striking (i) In calculating
and inserting the following:
In general
Except as provided in clause (iii), in calculating
;
by inserting or companies
after of a company
;
by striking subparagraph (A)
and inserting subparagraphs (A) and (B)
;
by striking equity
;
by striking the company in a smaller enterprise
and all that follows and inserting the following:
the company or companies in—
a smaller enterprise located in a low-income geographic area (as defined in section 689 of this title) or in a rural area; or
; and
by adding at the end the following new subclause:
a small business concern in an area of critical technology (as defined in section 4801 of title 10, United States Code) vital to maintaining the national security of the United States.
;
by amending clause (ii) to read as follows:
Limitation
While maintaining the limitation of subparagraph (A)(i) and consistent with a leverage determination ratio issued pursuant to section 301(c), the aggregate amount excluded for a company or companies under clause (i) from the calculation of the outstanding leverage of such company or companies for the purposes of subparagraphs (A) and (B) may not exceed the lesser of 50 percent of the private capital of such company or companies or $125,000,000.
; and
by amending clause (iii) to read as follows:
Prospective applicability
An investment by a licensee is eligible for exclusion from the calculation of outstanding leverage under clause (i) only if such investment is made by such licensee after the date of enactment of the Investing in All of America Act of 2023.
; and
by adding at the end the following new subparagraphs:
Annual adjustment
The Administrator shall adjust the dollar amounts described in subparagraphs (A) and (B)—
on the date of the enactment of this subparagraph, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the period—
beginning on December 18, 2015, and ending on the date of the enactment of this subparagraph, for subparagraph (B); and
beginning on June 21, 2018, and ending on the date of the enactment of this subparagraph, for subparagraph (A); and
on the date that is one year after the date of the enactment of this subparagraph, and annually thereafter, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the one-year period preceding the date of the adjustment under this clause.
.
Report
Not later than June 30 of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Administrator of the Small Business Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the results of the exclusion under subparagraph (C) of section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)), as amended by subsection (a), including the economic activity generated and jobs directly and indirectly created by the exclusion.
Passed the House of Representatives April 29, 2024.
Kevin F. McCumber,
Clerk.