H.R. 6099 (112th): SEED Act of 2012

112th Congress, 2011–2013. Text as of Jul 11, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 6099

IN THE HOUSE OF REPRESENTATIVES

July 11, 2012

(for himself, Mr. Polis, Mr. Honda, and Mr. Hinchey) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Public Works and Economic Development Act of 1965 with respect to grants for economic adjustment, and for other purposes.

1.

Short title

This Act may be cited as the Supporting Entrepreneurial Economic Development Act of 2012 or the SEED Act of 2012.

2.

Findings

Congress finds the following:

(1)

During the period from 1980 to 2005, businesses that were less than 5 years old accounted for almost all net job creation in the United States.

(2)

Efforts to support regional innovation clusters have facilitated the creation and growth of early-stage businesses that utilize local assets and talent.

(3)

Across the United States, 651 businesses were created from university research in 2009.

(4)

Regions that have organized efforts to support innovation and entrepreneurship are spurring economic recovery in those regions.

(5)

Venture development organizations have an excellent track record for creating and growing early-stage technology businesses through investment, extensive mentoring, and the provision of support services that position those businesses to raise additional funds or create a product or service for market.

(6)

Acquiring financing solely through loans is inadequate for early-stage technology businesses because of their stage of development and capital-intensive investment in research and development.

(7)

Assisting venture development organizations to use diverse funding tools to support early-stage technology businesses will accelerate the development of those businesses, rapidly create jobs, and bring new products and services to market.

3.

Direct expenditure or redistribution by recipient

Section 217 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3154c) is amended—

(1)

in subsection (c) by striking Subject to subsection (d) and inserting Subject to subsections (d) and (e);

(2)

by striking subsection (d) and inserting the following:

(d)

Limitation

(1)

In general

Under subsection (c), a recipient may not make a grant, equity investment, or convertible loan to a private for-profit entity.

(2)

Exception

Notwithstanding paragraph (1), a venture development organization may make a grant, equity investment, or convertible loan to a private for-profit entity.

; and

(3)

by adding at the end the following:

(e)

Return on investment

If a venture development organization that assists a private for-profit entity with funds made available from a grant under section 209 receives funds from the private for-profit entity, at any time, as a result of such assistance, the venture development organization shall use such funds only to assist, including through grants, equity investments, and convertible loans, other private for-profit entities.

(f)

Venture development organization defined

In this section, the term venture development organization means a public entity or private, nonprofit entity that provides to an early-stage technology business, to promote the growth of that business, each of the following:

(1)

Financial investment or assistance acquiring financial investment.

(2)

Expert mentoring.

(3)

Assistance to speed the commercialization of technology.

.