DEFINITIONS.

SEC. 410. DEFINITIONS. Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662) is amended as follows: (1) by striking “and” at the end of paragraph (7); (2) by striking the period at the end of paragraph (8) and inserting in lieu thereof a semicolon; and (3) by adding at the end the following new paragraphs: “(9) notwithstanding any other provision of law, the term ‘private capital’ means the private paid-in capital and paid- in surplus of a corporate licensee, or the private partnership capital of an unincorporate licensee, inclusive of (A) any funds invested in the licensee by a public or private pension fund, (B) any funds invested in the licensee by State or local government entities, to the extent that such investment does not exceed 33 percent of a licensee’s total private capital and other-wise meets criteria established by the Administration, and (C) unfunded commitments from institutional investors that meet criteria established by the Administration, but it excludes any funds which are borrowed by the licensee from any source or which are obtained or derived, directly or indirectly, from any Federal source, including the Administration: Provided, That no unfunded commitment from an institutional investor may be used for the purpose of meeting the minimum amount of private capital required by this Act or as the basis for the Administration to issue obligations to provide financing; and “(10) the term ‘leverage’ includes debentures purchased or guaranteed by the Administration, participating securities purchased or guaranteed by the Administration, or preferred securities issued by companies licensed under section 301(d) of this Act and which have been purchased by the Administration.”.