This bill amends the Small Business Investment Act of 1958 to require the Small Business Administration (SBA), when calculating the outstanding leverage of a small business investment company (SBIC), to exclude investments made in Small Business Innovation Research (SBIR) participants and Small Business Technology Transfer (STTR) participants. (SBICs are subject to a limit on their outstanding leverage. SBIR and STTR participants are small business concerns that receive SBA contracts or grants for research and development.)
The Small Business Act is amended to include SBICs as a type of investor (along with venture capital, hedge fund, and private equity firms) whose investment must be considered for various purposes under the SBIR and STTR programs.