On September 20, the House Small Business Committee approved, by voice vote, the Small Business Investment Expansion Act (H.R. 3567). The bill would amend the Small Business Act of 1958 (P.L. 85-536) to expand opportunities for investments in small businesses.
Sponsored by Rep. Jason Altmire (D-PA), H.R. 3567 would expand the Small Business Administration’s New Markets Venture Capital Program, which focuses on increasing economic development in low-income areas. The measure would cap investments in women-owned and socially disadvantaged small businesses at $175 million for one company and $250 million for two or more companies under common control.
The measure also authorizes $10 million in FY2008 and $20 million in both FY2009 and FY2010 to establish the Angel Investment program. The program would provide up to $2 million to “approved angel groups” state or local governments, nonprofit organizations, state mutual benefit corporations, Small Business Development Centers, or women’s business centers that invest venture capital in small start-up businesses, including women-owned and socially and economically disadvantaged small businesses.
