SEED Act of 2012

Supporting Entrepreneurial Economic Development Act of 2012 or the SEED Act of 2012 - Amends the Public Works and Economic Development Act of 1965 to prohibit a recipient of an economic adjustment grant from making, but permits a venture development organization to make, a grant, equity investment, or convertible loan to a private for-profit entity.

Requires such an organization that assists a private for-profit entity with funds made available from an economic adjustment grant and that receives funds from such entity at any time as a result of such assistance to use such funds only to assist other private for-profit entities.

Defines a "venture development organization" as a public entity or private, nonprofit entity that provides to an early-stage technology business, to promote the growth of that business: (1) financial investment or assistance acquiring financial investment, (2) expert mentoring, and (3) assistance to speed the commercialization of technology.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6099 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6099

  To amend the Public Works and Economic Development Act of 1965 with 
   respect to grants for economic adjustment, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2012

   Mr. Carnahan (for himself, Mr. Polis, Mr. Honda, and Mr. Hinchey) 
 introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Public Works and Economic Development Act of 1965 with 
   respect to grants for economic adjustment, 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 ``Supporting Entrepreneurial Economic 
Development Act of 2012'' or the ``SEED Act of 2012''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) During the period from 1980 to 2005, businesses that 
        were less than 5 years old accounted for almost all net job 
        creation in the United States.
            (2) Efforts to support regional innovation clusters have 
        facilitated the creation and growth of early-stage businesses 
        that utilize local assets and talent.
            (3) Across the United States, 651 businesses were created 
        from university research in 2009.
            (4) Regions that have organized efforts to support 
        innovation and entrepreneurship are spurring economic recovery 
        in those regions.
            (5) Venture development organizations have an excellent 
        track record for creating and growing early-stage technology 
        businesses through investment, extensive mentoring, and the 
        provision of support services that position those businesses to 
        raise additional funds or create a product or service for 
        market.
            (6) Acquiring financing solely through loans is inadequate 
        for early-stage technology businesses because of their stage of 
        development and capital-intensive investment in research and 
        development.
            (7) Assisting venture development organizations to use 
        diverse funding tools to support early-stage technology 
        businesses will accelerate the development of those businesses, 
        rapidly create jobs, and bring new products and services to 
        market.

SEC. 3. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

    Section 217 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3154c) is amended--
            (1) in subsection (c) by striking ``Subject to subsection 
        (d)'' and inserting ``Subject to subsections (d) and (e)'';
            (2) by striking subsection (d) and inserting the following:
    ``(d) Limitation.--
            ``(1) In general.--Under subsection (c), a recipient may 
        not make a grant, equity investment, or convertible loan to a 
        private for-profit entity.
            ``(2) Exception.--Notwithstanding paragraph (1), a venture 
        development organization may make a grant, equity investment, 
        or convertible loan to a private for-profit entity.''; and
            (3) by adding at the end the following:
    ``(e) Return on Investment.--If a venture development organization 
that assists a private for-profit entity with funds made available from 
a grant under section 209 receives funds from the private for-profit 
entity, at any time, as a result of such assistance, the venture 
development organization shall use such funds only to assist, including 
through grants, equity investments, and convertible loans, other 
private for-profit entities.
    ``(f) Venture Development Organization Defined.--In this section, 
the term `venture development organization' means a public entity or 
private, nonprofit entity that provides to an early-stage technology 
business, to promote the growth of that business, each of the 
following:
            ``(1) Financial investment or assistance acquiring 
        financial investment.
            ``(2) Expert mentoring.
            ``(3) Assistance to speed the commercialization of 
        technology.''.
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