H.R. 68 (rh) To amend section 20 of the Small Business Act and make technical corrections in title III of the Small Business Investment Act. [Reported in House] ...

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106th CONGRESS
  1st Session
                                 H. R. 68


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1999

                                Received

                           February 22, 1999

       Read twice and referred to the Committee on Small Business

_______________________________________________________________________

                                 AN ACT


 
   To amend section 20 of the Small Business Act and make technical 
     corrections in title III of the Small Business Investment Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Investment Company 
Technical Corrections Act of 1999''.

SEC. 2. SBIC PROGRAM.

    (a) In General.--Section 308(i)(2) of the Small Business Investment 
Act of 1958 (15 U.S.C. 687(i)(2)) is amended by adding at the end the 
following: ``In this paragraph, the term `interest' includes only the 
maximum mandatory sum, expressed in dollars or as a percentage rate, 
that is payable with respect to the business loan amount received by 
the small business concern, and does not include the value, if any, of 
contingent obligations, including warrants, royalty, or conversion 
rights, granting the small business investment company an ownership 
interest in the equity or increased future revenue of the small 
business concern receiving the business loan.''.
    (b) Funding Levels.--Section 20 of the Small Business Act (15 
U.S.C. 631 note) is amended--
            (1) in subsection (d)(1)(C)(i), by striking 
        ``$800,000,000'' and inserting ``$1,200,000,000''; and
            (2) in subsection (e)(1)(C)(i), by striking 
        ``$900,000,000'' and inserting ``$1,500,000,000''.
    (c) Technical Corrections.--Title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 661 et seq.) is amended--
            (1) in section 303(g) (15 U.S.C. 683(g)), by striking 
        paragraph (13);
            (2) in section 308 (15 U.S.C. 687) by adding at the end the 
        following:
    ``(j) For the purposes of sections 304 and 305, in any case in 
which an incorporated or unincorporated business is not required by law 
to pay Federal income taxes at the enterprise level, but is required to 
pass income through to its shareholders or partners, an eligible small 
business or smaller enterprise may be determined by computing the 
after-tax income of such business by deducting from the net income an 
amount equal to the net income multiplied by the combined marginal 
Federal and State income tax rate for corporations.''; and
            (3) in section 320 (15 U.S.C. 687m), by striking ``6'' and 
        inserting ``12''.

            Passed the House of Representatives February 2, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

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