Increasing Small Business Investment.

Sec. 505. Increasing Small Business Investment. (a) Simplified Maximum Leverage Limits.—Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:(1) By striking so much of paragraph (2) as precedes subparagraphs (C) and (D) and inserting the following:“(2) Maximum leverage.—“(A) In general.—The maximum amount of outstanding leverage made available to any one company licensed under section 301(c) of this Act may not exceed the lesser of—“(i) 300 percent of such company’s private capital; or“(ii) $150,000,000.“(B) Multiple licenses under common control.—The maximum amount of outstanding leverage made available to two or more companies licensed under section 301(c) of this Act that are commonly controlled (as determined by the Administrator) and not under capital impairment may not exceed $225,000,000.”;(2) By amending paragraph (2)(C) by inserting “(i)” before “In calculating” and adding the following at the end thereof:“(ii) The maximum amount of outstanding leverage made available to—“(I) any 1 company described in clause (iii) may not exceed the lesser of 300 percent of private capital of the company, or $175,000,000; and“(II) 2 or more companies described in clause (iii) that are under common control (as determined by the Administrator) may not exceed $250,000,000.“(iii) A company described in this clause is a company licensed under section 301(c) in the first fiscal year after the date of enactment of this clause or any fiscal year thereafter that certifies in writing that not less than 50 percent of the dollar amount of investments of that company shall be made in companies that are located in a low-income geographic area (as that term is defined in section 351).”.(3) By striking paragraph (4).(b) Simplified Aggregate Investment Limitations.—Section 306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows:“(a) Percentage Limitation on Private Capital.—If any small business investment company has obtained financing from the Administrator and such financing remains outstanding, the aggregate amount of securities acquired and for which commitments may be issued by such company under the provisions of this title 123 STAT. 157 for any single enterprise shall not, without the approval of the Administrator, exceed 10 percent of the sum of—“(1) the private capital of such company; and“(2) the total amount of leverage projected by the company in the company’s business plan that was approved by the Administrator at the time of the grant of the company’s license.”.(c) Investments in Smaller Enterprises.—Section 303(d) of the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to read as follows:“(d) Investments in Smaller Enterprises.—The Administrator shall require each licensee, as a condition of approval of an application for leverage, to certify in writing that not less than 25 percent of the aggregate dollar amount of financings of that licensee shall be provided to smaller enterprises.”.