INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.(a) Maximum Leverage.—Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by adding at the end the following:“(D) Investments in energy saving small businesses.—“(i) In general.—Subject to clause (ii), in calculating the outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall exclude the amount of the cost basis of any Energy Saving qualified investment in a smaller enterprise made in the first fiscal year after the date of enactment of this subparagraph or any fiscal year thereafter by a company licensed in the applicable fiscal year.“(ii) Limitations.—121 STAT. 1774“(I) Amount of exclusion.—The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company.“(II) Maximum investment.—A company shall not make an Energy Saving qualified investment in any one entity in an amount equal to more than 20 percent of the private capital of that company.“(III) Other terms.—The exclusion of amounts under clause (i) shall be subject to such terms as the Administrator may impose to ensure that there is no cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) with respect to purchasing or guaranteeing any debenture involved.”.(b) Maximum Aggregate Amount of Leverage.—Section 303(b)(4) of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(4)) is amended by adding at the end the following:“(E) Investments in energy saving small businesses.—“(i) In general.—Subject to clause (ii), in calculating the aggregate outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall exclude the amount of the cost basis of any Energy Saving qualified investment in a smaller enterprise made in the first fiscal year after the date of enactment of this subparagraph or any fiscal year thereafter by a company licensed in the applicable fiscal year.“(ii) Limitations.—“(I) Amount of exclusion.—The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company.“(II) Maximum investment.—A company shall not make an Energy Saving qualified investment in any one entity in an amount equal to more than 20 percent of the private capital of that company.“(III) Other terms.—The exclusion of amounts under clause (i) shall be subject to such terms as the Administrator may impose to ensure that there is no cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) with respect to purchasing or guaranteeing any debenture involved.”.