Small Business Equity Enhancement Act of 1992

Summary

Small Business Equity Enhancement Act of 1992 - Amends the Small Business Investment Act of 1958 to revise provisions with respect to debentures issued by small business investment companies (SBICs) to specify that: (1) the total amount of debentures and participating securities that may be guaranteed by the Small Business Administration (SBA) and outstanding from an SBIC licensed under the Act shall not exceed 300 percent of the private capital of such SBIC; and (2) in no event shall the aggregate amount of outstanding debentures and participating securities purchased or guaranteed by the SBA of any such SBIC which are commonly controlled (as determined by the SBA) exceed $90,000,000. Provides that: (1) nothing under such provisions shall require any such SBIC that on March 31, 1993, has outstanding debentures in excess of 300 percent of its private capital to repay such excess; and (2) any such SBIC may apply for additional debenture guarantee or participating security with the proceeds to be used solely to pay the amount due on such maturing debenture, but the maturity date of the new debenture or security shall not be later than September 30, 2002. Sets forth a formula for determining the maximum amount of outstanding guaranteed debentures and participating securities made available to an SBIC licensed under the Act, to be effective after March 31, 1993. Directs the SBA, not later than December 15, 1994, and in each subsequent calendar year, to apply an inflationary adjustment to the dollar amounts specified in the leverage formula which shall be the percentage (if any) by which the Consumer Price Index (CPI) for the preceding calendar year exceeds the CPI for calendar year 1993. Authorizes the SBA to guarantee the payment of the redemption price and dividends or interest on participating securities issued by SBICs licensed pursuant to the Act, and of a trust or pool acting on behalf of the SBA to purchase such securities. Sets forth: (1) restrictions with respect to redemption of, dividend and interest payments on, and other issues regarding, such securities; and (2) terms and conditions regarding the computation of amounts due the SBA under such securities. Revises provisions of the Act related to the issuance and guarantee of trust certificates to provide for the redemption, whether voluntary or involuntary, of all participating securities residing in the pool, as well as debentures. Bars any Federal, State, or local law from precluding or limiting the exercise by the SBA of its ownership rights in participating securities residing in a trust or pool against which trust certificates are issued. Directs the SBA to contract with an agent or agents to carry out on behalf of the SBA pooling and central registration functions (currently, with an agent to carry out central registration functions), including maintenance on behalf of and under the direction of the SBA of such commercial bank accounts as necessary to facilitate trusts or pools backed by debentures or securities guaranteed or purchased under the Act and the issuance of trust certificates to facilitate such pooling. Authorizes appropriations. Directs the SBA, prior to licensing and approving any request for financing, to determine the ability of an SBIC to make periodic payments on any debt of the SBIC which is interest bearing, taking into consideration the income which the SBIC anticipates on its contemplated investments, the experience of its owners and managers, its history as an entity, and its financial resources. Requires each SBIC to adopt written guidelines for determination of the value of its investments. Makes the board of directors of corporations, the general partners of partnerships, and the owners of proprietorships solely responsible for making a good faith determination of the fair market value of the investments made by such SBIC. Requires that such determinations be made and reported to the SBA at least semiannually or at more frequent intervals as the SBA determines appropriate (but any SBIC which does not have outstanding financial assistance under the Act shall be required to make such determinations and reports annually, unless the SBA determines otherwise). Subjects each SBIC to examinations made by the Investment Division of the SBA (currently, by SBA examiners). Transfers resources related to the examination function under the Act from the Inspector General of the SBA to the SBA's Investment Division. Specifies that if any SBIC has obtained SBA financing which remains outstanding, the aggregate amount of obligations and securities acquired and for which commitments may be issued by such SBIC under the provisions of the Act for any single enterprise shall not exceed 20 percent of the private capital of such SBIC without SBA approval. Permits SBICs with outstanding financings (currently, SBICs) to invest funds, subject to specified conditions. Directs the SBA to: (1) complete a review of regulations intended to provide for the safety and soundness of those SBICs which obtain SBA financing under the Act; and (2) exempt from such regulations, or separately regulate, those SBICs which do not obtain such financing. Sets forth reporting requirements. Increases minimum capital requirements for SBICs licensed on or after October 1, 1992 (currently, 1979). Defines "private capital" to mean the private paid-in capital and paid-in surplus of a corporate licensee, or the private partnership capital of an unincorporated licensee, inclusive of any funds invested in the licensee by a public or private pension fund, and commitments from institutional investors that meet SBA criteria which are funded by such investors prior to the licensee obtaining financing from the SBA based on such commitments, but exclusive of any funds borrowed by the licensee from any source, obtained from the SBA through the sale of preferred securities, or derived directly or indirectly from any Federal source. Directs the SBA to permit those SBICs which have obtained financings pursuant to the Act to charge a maximum rate of interest based upon the cost of such financings determined on an annual basis. Amends the Small Business Act to provide that, subject to approval in appropriations Acts, amounts authorized for preferred stock, debentures, or participating securities under the Small Business Investment Act of 1958 may be obligated in one fiscal year and disbursed or guaranteed in the following fiscal year.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 18 May 1992

   Introduced

   Referred to the House Committee on Small Business.

   Source: IntroReferral

2. 18 May 1992

   Introduced

   Introduced in House

   Source: IntroReferral

3. 18 May 1992

   Introduced

   Introduced in House

   Source: IntroReferral

4. 3 June 1992

   Committee

   Committee Hearings Held.

   Source: Committee

5. 10 June 1992

   Committee

   Committee Hearings Held.

   Source: Committee

6. 24 June 1992

   Committee

   Committee Consideration and Mark-up Session Held.

   Source: Committee

7. 24 June 1992

   Reported

   Ordered to be Reported (Amended).

   Source: Committee

8. 25 June 1992

   Calendars

   Placed on the Union Calendar, Calendar No. 340.

   Source: Calendars

9. 25 June 1992

   Reported

   Reported (Amended) by the Committee on Small Business. H. Rept. 102-619.

   Source: Committee

10. 25 June 1992

    Reported

    Reported (Amended) by the Committee on Small Business. H. Rept. 102-619.

    Source: Committee

11. 29 July 1992

    Reported

    Rules Committee Resolution H. Res. 531 Reported to House. Rule provides for consideration of H.R. 5191 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. It shall be in order to consider the amendment in the nature of a substitute recommended by the Committee on Small Business now printed in the bill as an original bill for the purpose of amendment under the five-minute rule. Measure will be read by section. Bill is open to amendments.

    Source: Floor

12. 30 July 1992

    Passed

    Rule H. Res. 531 passed House.

    Source: Floor

13. 31 July 1992

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

14. 31 July 1992

    Vote

    On passage Passed by the Yeas and Nays: 356 - 2 (Roll No. 358).

    Source: Floor

15. 31 July 1992

    Vote

    Passed/agreed to in House: On passage Passed by the Yeas and Nays: 356 - 2 (Roll No. 358).

    Source: Floor

16. 31 July 1992

    Passed

    The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.

    Source: Floor

17. 31 July 1992

    Floor

    The previous question was ordered pursuant to the rule.

    Source: Floor

18. 31 July 1992

    Floor

    The House rose from the Committee of the Whole House on the state of the Union to report H.R. 5191.

    Source: Floor

19. 31 July 1992

    Floor

    Rule provides for consideration of H.R. 5191 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. It shall be in order to consider the amendment in the nature of a substitute recommended by the Committee on Small Business now printed in the bill as an original bill for the purpose of amendment under the five-minute rule. Measure will be read by section. Bill is open to amendments.

    Source: Floor

20. 31 July 1992

    Floor

    The Speaker designated the Honorable David R. Obey to act as Chairman of the Committee.

    Source: Floor

21. 31 July 1992

    Floor

    House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 531 and Rule XXIII.

    Source: Floor

22. 31 July 1992

    Floor

    Considered under the provisions of rule H. Res. 531.

    Source: Floor

23. 3 August 1992

    Introduced

    Received in the Senate and read twice and referred to the Committee on Small Business.

    Source: IntroReferral

24. 6 August 1992

    Calendars

    Placed on Senate Legislative Calendar under General Orders. Calendar No. 609.

    Source: Calendars

25. 6 August 1992

    Reported

    Committee on Small Business. Ordered to be reported with an amendment in the nature of a substitute favorably.

    Source: Committee

26. 6 August 1992

    Reported

    Committee on Small Business. Reported to Senate by Senator Bumpers with an amendment in the nature of a substitute. Without written report.

    Source: Committee

27. 10 August 1992

    Passed

    Passed Senate with an amendment by Voice Vote.

    Source: Floor

28. 10 August 1992

    Passed

    Passed/agreed to in Senate: Passed Senate with an amendment by Voice Vote.

    Source: Floor

29. 11 August 1992

    Floor

    Message on Senate action sent to the House.

    Source: Floor

Votes

No vote records are attached yet.

Versions

• Engrossed Amendment Senate · — · Download file
• Engrossed in House · — · Download file
• Introduced in House · — · Download file
• Referred in Senate · — · Download file
• Reported in House · — · Download file
• Reported to Senate · — · Download file

Documents

9 official files

• Reported to Senate (text)

  Reported to Senate · EN

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• Reported in House (text)

  Reported in House · EN

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• Referred in Senate (text)

  Referred in Senate · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Engrossed in House (text)

  Engrossed in House · EN

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• Engrossed Amendment Senate (text)

  Engrossed Amendment Senate · EN

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• Passed Senate amended

  summary · EN · 10 August 1992

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• Reported to House with amendment(s)

  summary · EN · 25 June 1992

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• Introduced in House

  summary · EN · 18 May 1992

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Sponsors

• Rep. LaFalce, John J. [D-NY-29] · D · Sponsor
• Rep. Ireland, Andrew P. [R-FL-10] · R · Cosponsor
• Rep. Smith, Neal Edward [D-IA-4] · D · Cosponsor
• Rep. Sisisky, Norman [D-VA-4] · D · Cosponsor
• Rep. Nowak, Henry [D-NY-33] · D · Cosponsor
• Rep. Bustamante, Albert G. [D-TX-23] · D · Cosponsor
• Rep. Mavroules, Nicholas [D-MA-6] · D · Cosponsor
• Sen. Allen, George [R-VA] · R · Cosponsor
• Rep. Olin, James R. [D-VA-6] · D · Cosponsor
• Rep. Camp, Dave [R-MI-4] · R · Cosponsor
• Rep. Skeen, Joe [R-NM-2] · R · Cosponsor
• Rep. Zeliff, William H., Jr. [R-NH-1] · R · Cosponsor
• Rep. Conyers, John, Jr. [D-MI-13] · D · Cosponsor
• Rep. Horn, Joan Kelly [D-MO-2] · D · Cosponsor
• Rep. Bilbray, James H. [D-NV-1] · D · Cosponsor
• Rep. Ramstad, Jim [R-MN-3] · R · Cosponsor
• Rep. Sensenbrenner, F. James, Jr. [R-WI-5] · R · Cosponsor
• Rep. Hancock, Mel [R-MO-7] · R · Cosponsor
• Rep. Orton, Bill [D-UT-3] · D · Cosponsor
• · sssb00 · Standing
• · hssm00 · Standing

Related records

• related to → Providing for the consideration of the bill (H.R. 5191) to encourage private concerns to provide equity capital to small business concerns, and for other purposes.
• amends ← Amendment adds "Buy American" provisions to assistance made available to small businesses under the bill.
• amends ← Amendment modifies the provisions of the bill relating to the subsidy rate for the financing of the Small Business Investment Company program by indexing the subsidy rate to reflect changes in interest rates.