INDIRECT FUNDS FROM STATE OR LOCAL GOVERNMENTS.

SEC. 413. INDIRECT FUNDS FROM STATE OR LOCAL GOVERNMENTS. Section 303(e) of the Small Business Investment Act of 1958 (15 U.S.C. 683(e)) is amended— (1) by inserting after the word “company” the following: “licensed under section 301(d) and notwithstanding section 103(9)”; and (2) by striking “prior” and all that follows through the period at the end and inserting “to November 21, 1989: Provided, That such companies may include in private capital for any purpose funds indirectly obtained from State or local governments. As used in this subsection, the term ‘capital indirectly obtained’ includes income generated by a State financing authority or similar State institution or agency or from the investment of State or local money or amounts originally provided to nonprofit institutions or corporations which such institutions or corporations, in their discretion, determine to invest in a company licensed under section 301(d).”.