S.3375 - Small Business Innovation Act of 2016114th Congress (2015-2016)
|Sponsor:||Sen. Baldwin, Tammy [D-WI] (Introduced 09/21/2016)|
|Committees:||Senate - Small Business and Entrepreneurship|
|Latest Action:||Senate - 09/21/2016 Read twice and referred to the Committee on Small Business and Entrepreneurship. (All Actions)|
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Summary: S.3375 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in Senate (09/21/2016)
Small Business Innovation Act of 2016
This bill amends the Small Business Investment Act of 1958 to authorize the Small Business Administration (SBA) to guarantee the payment of up to $4 billion per fiscal year for debentures or participating securities issued by small business investment companies (SBICs) to encourage the formation and growth of small businesses.
The SBA must establish and carry out an early-stage investment program to provide, through participating investment companies, equity financing to support early-stage businesses that have not generated positive cash flow at any time prior to an initial investment by a participating investment company. The bill outlines participating investment company application requirements and selection and approval procedures. It allows the SBA to make one or more equity financings to a participating investment company, with a limit of $100 million to any one company. A participating investment company shall make all of its investments in small businesses, of which at least 50% shall be early-stage small businesses in specified targeted industries. A separate account is established for equity financings under the program.