Increased Capital Access for Growing Business Act

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

Increased Capital Access for Growing Business Act - Amends the Investment Company Act of 1940 to include as an "eligible portfolio company," for purposes of eligibility for investment in small- and medium-sized businesses, an issuer of securities that: (1) does not have any class of equity securities listed for trading on a national securities exchange or traded through the facilities of a national securities association; or (2) has an aggregate value of outstanding publicly traded equity securities of not more than $250 million. Allows the Securities and Exchange Commission to adjust such amount consistent with the public interest, protection of investors, and the public purpose.

Includes as an eligible business development company, also for such purposes, an investment company: (1) without any such class of equity securities; or (2) that is not an eligible portfolio company because the aggregate value of its outstanding publicly traded equity securities is more than $250 million but not more than $500 million, as long as such securities represent no more than ten percent of the total invested assets of the company.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3170 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3170

 To amend the Investment Company Act of 1940 to provide incentives for 
           small business investment, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2003

  Mrs. Kelly (for herself and Ms. Velazquez) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Investment Company Act of 1940 to provide incentives for 
           small business investment, and for other purposes.

    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 ``Increased Capital Access for Growing 
Business Act''.

SEC. 2. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940.

    (a) Definition of Eligible Portfolio Company.--Section 2(a)(46)(C) 
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(46)(C)) is 
amended--
            (1) by striking clause (i) and inserting the following:
                            ``(i) it does not have any class of equity 
                        securities listed for trading on a national 
                        securities exchange or traded through the 
                        facilities of a national securities association 
                        as described in Section 15A of the Securities 
                        Exchange Act of 1934;'';
            (2) by striking ``or'' at the end of clause (iii);
            (3) by redesignating clause (iv) as clause (v); and
            (4) by inserting after clause (iii) the following new 
        clause:
                            ``(iv) the aggregate value of its 
                        outstanding publicly traded equity securities 
                        is not more than $250,000,000, except that the 
                        Commission may adjust such amounts by rule, 
                        regulation, or order to reflect changes in one 
                        or more generally accepted indices or other 
                        indicators for small business, consistent with 
                        the public interest, the protection of 
                        investors, and the purposes fairly intended by 
                        the policy and provisions of this title; or''.
    (b) Assets of Business Development Companies.--Section 55(a)(1) of 
the Investment Company Act of 1940 (15 U.S.C. 80a-55(a)(1)) is 
amended--
            (1) in subparagraph (B), by striking ``securities with 
        respect to which a member of a national securities exchange, 
        broker, or dealer may extend or maintain credit to or for a 
        customer pursuant to rules or regulations adopted by the Board 
        of Governors of the Federal Reserve System under Section 7 of 
        the Securities Exchange Act of 1934'' and inserting the 
        following: ``equity securities listed for trading on a national 
        securities exchange or traded through the facilities of a 
        national securities association as described in Section 15A of 
        the Securities Exchange Act of 1934''; and
            (2) by striking ``or'' at the end of subparagraph (A), by 
        inserting ``or'' after the semicolon at the end of subparagraph 
        (B), and by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) from the issuer of such securities, which 
                issuer is described in section 2(a)(46)(A) and (B) but 
                is not an eligible portfolio company because the 
                aggregate value of its outstanding publicly traded 
                equity securities is more than $250,000,000 but not 
                more than $500,000,000, if such securities represent 
                not more than 10 per centum of the total assets of the 
                business development company invested in securities 
                described in paragraphs (1) through (6) of this 
                section;''.
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