H.R. 3738: Small Business Early-Stage Investment Act of 2009

H.R. 3738

Small Business Early-Stage Investment Act of 2009

Date
November 17, 2009 (111th Congress, 1st Session)

Staff Contact
Communications

Floor Situation

The House is scheduled to consider H.R. 3738, under suspension of the rules, requiring a two-thirds majority vote for passage.  H.R. 3738 was introduced on October 7, 2009, by Rep. Glenn Nye (D-VA).  The bill was incorporated into H.R. 3854, which passed the House on October 29, 2009, by a vote of 389-32.

 

Bill Summary

The bill establishes a new Small Business Administration (SBA) grant program for venture capital funds to invest in early-stage small businesses in targeted industries.  Targeted industries include manufacturing, energy, agriculture, IT, digital media, and defense.  H.R. 3738 authorizes $200 million for the first full fiscal year beginning after the date of the enactment.  Grants could not exceed $100 million for any company.  A grant made to a participating investment company may not be in an amount that exceeds the amount of the company's non-federal capital.

 

Background

The SBA, created in 1953, has a loan portfolio of about 220,000 loans worth over $50 billion. The SBA operates several financing programs that offer subsidies to small businesses attempting to secure access to capital.

Cost

A CBO score for H.R. 3738 is not yet available.