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S. 2831 (114th): A bill to amend the Small Business Investment Act of 1958 to provide priority for applicants for a license to operate as a small business investment company that are located in a disaster area.


The text of the bill below is as of May 24, 2016 (Reported by Senate Committee). The bill was not enacted into law.


II

Calendar No. 481

114th CONGRESS

2d Session

S. 2831

IN THE SENATE OF THE UNITED STATES

April 21, 2016

introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

May 24, 2016

Reported by , with an amendment

Strike out all after the enacting clause and insert the part printed in italic

A BILL

To amend the Small Business Investment Act of 1958 to provide priority for applicants for a license to operate as a small business investment company that are located in a disaster area.

1.

SBIC program fast-track applications

Section 301(c)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 681(c)(2)) is amended by adding at the end the following:

(C)

Priority for applicants located in disaster areas

(i)

Definition

In this subparagraph, the term disaster area means the area for which the President has declared a major disaster (as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), during the period of the declaration.

(ii)

Priority

The Administrator shall give priority to an application for a license to operate as a small business investment company that is from an applicant located in a disaster area.

.

1.

SBIC program

(a)

Fast track applications

Section 301(c)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 681(c)(2)) is amended by adding at the end the following:

(C)

Priority for applicants located in disaster areas

(i)

Definition

In this subparagraph, the term disaster area means the area for which the President has declared a major disaster (as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), during the period of the declaration.

(ii)

Priority

The Administrator shall give priority to an application for a license to operate as a small business investment company that is from an applicant located in a disaster area.

.

(b)

Maximum leverage

Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended by adding at the end the following:

(E)

Investments in disaster areas

In calculating the outstanding leverage of a company licensed under section 301(c) for the purposes of subparagraph (A), or 2 or more companies licensed under section 301(c) for the purposes of subparagraph (B), the Administrator shall not include the amount equal to the cost basis of any investment made by the company in a small business concern that is located in an area for which the President declared a major disaster (as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) during the 1-year period beginning on the date of the declaration.

.

May 24, 2016

Reported with an amendment