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Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. email
From Lisa Green to Melissa G Green (1 page)
07/30/1999
P5
002. memo
Memorandum to the President From Gene Sperling (4 pages)
03/29/1999
P5
COLLECTION:
Clinton Presidential Records
Policy Development
Lisa Green
OA/Box Number: 20586
FOLDER TITLE:
[New Markets Legislation] [loose]
2012-0043-S
ms438
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information |(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA]
an agency [(b)(2) of the FOIA|
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA]
financial information |(a)(4) of the PRA|
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
h(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
h(8) Release would disclose information concerning the regulation of
of gift.
financial institutions |(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells |(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. email
From Lisa Green to Melissa G Green (1 page)
07/30/1999
P5
COLLECTION:
Clinton Presidential Records
Policy Development
Lisa Green
OA/Box Number: 20586
FOLDER TITLE:
[New Markets Legislation] [loose]
2012-0043-S
ms438
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act 15 U.S.C. 552(b)]
PI National Security Classified Information |(a)(1) of the PRA
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute ((a)(3) of the PRA]
an agency |(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
h(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
h(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
To:
See the distribution list at the bottom of this message
CC:
See the distribution list at the bottom of this message
Subject: VP/Cong. Hisp. Caucus Follow-up
As you know, the Vice President met with the Congressional Hispanic Caucus on Tuesday, covering a
variety of different issues that they raised and promising to follow up on matters on which they sought
assistance or a commitment. Some of you attended the meeting and most provided background on these
issues for the briefing -- thank you very much for your help in getting those materials together, it was a
great help. For those who were not there, this info will give you a briefer on the necessary follow-up,
where applicable, but also should provide a sense for the Caucus' issue priorities and positions,
especially as they pertain to the appropriations and budget process Congress is sifting through.
The format of the meeting was broken down by four primary issues: education; health; economic
development; and Census 2000. Other issues covered were: Puerto Rico/Guam matters; and
immigration. The VP gave the Members some clear directives as to who they can expect to take the lead
from WH/OVP on the matters discussed. Below is a rundown of the staff contacts for the various pieces
discussed. I've noted the general comment by the Member or the request, followed by the VP's comment,
commitment, or specific statement where it was notable. For those who attended, please let me know if I
missed something or have the wrong person for the task. Also, so I can stay in contact with the Caucus
staff and be sure they know of our follow through, it would be helpful to know of your timing on these
fronts. For the few tasks that merit meetings with the Members, I will contact you about moving forward
with those. Thanks.
I. Education
A. School Modernization (Rep. Loretta Sanchez) -- need WH support for school construction in approps;
must be
included in final budget/approps agreement. VP will work to support.
B. E-rate (Rep. Matthew Martinez) -- need continued support for the e-rate; wants WH to veto House
passed
Teacher Empowerment bill. VP -- will get that message to POTUS.
C. Hispanic Education Plan (Rep. Ruben Hinojosa) -- wants WH to support increased funding in budget
process for the programs to support the Hispanic drop-out rate. Additionally, Hinojosa indicated that the
Caucus would offer its own alternative to the Elementary and Secondary Education Act that specifically
includes increased funding for the Hispanic Education Action Plan. Wanted the VP to commit to support
funding increase for HEAP in this year's budget. VP -- promise to fight internally for that funding
request.
II. Health
A. High uninsured rates for Latinos (Rep. Ed Pastor) -- Latinos have significantly high rates of uninsured
individuals, esp. children. What is WH doing to address this?? VP - working on interagency strategy;
DoJ announcement re: immigrants and healthcare; CHIP outreach. Personally, I want to work to
ensure that all children have access to affordable healthcare.
B. Health disparities HIV/AIDS and Diabetes (Rep. Ciro Rodriguez) -- Significant disparity in Latino
community on the incidence of AIDS and diabetes. During Hispanic awareness week in September, there
will be an event early in the week focusing on this topic. Will you designate someone from your staff to
attend/participate in the session?? VP - Janet Murguia will follow up with you.
III. Economic Development
A. Soutwest Border Initiative (Rep. Silvestre Reyes) -- Since the May announcement, there has been very
little engagement by OVP to get the initiative going. Want to work with office to build on and develop the
goals of the announcement. VP- Alvin Brown will follow up with you. (VP also mentioned he wanted
a memo from Alvin.) I would recommend that we put together a staff level meeting with Rep. Reyes as
part of follow up. Alvin, let me know if you're fine with that and I will work with you and Jonathan Weiss to
set that up.
B. New Markets Initiative (Rep. Nydia Velazquez) -- Would have like New Markets tour to highlight more
Latino communities. She has been asked by WH to introduce legislation for the New Markets package.
She has major concerns with the bill because, according to her, over 40% of the benefits are going to
areas that are not low-income communities. It needs to reflect more of a focus on communities that need
assistance. Want a commitment from WH that the legislation will not move forward unless there is more
of a focus on these communities. VP - will relay that message to POTUS. Can't imagine that we
would not satisfy your concerns, because of your expertise as lead Democrat on the Small
Business Committee.
C. Financial Restructuring Assistance Program and Runaway Film issue. (Rep. Xavier Becerra) Want the
Admin to shift funds over to the Title IX revolving loan program. Mentioned letters from Sen. Feinstein
and Boxer to Jack Lew. Please consider the runaway film issue that is affecting film production
companies -- important for parity. VP - will follow up on runaway film production matter. I think
parity in film making is important, but I'll need to take a look at it.
IV. Census 2000
A. Fairness (Rep. Charlie Gonzalez) Want to see you have active participation in Census fight. VP - my
father fought hard for voting rights, you can count on me for anything. I'm eager to participate in
Census events.
B. Fairness, cont'd (Rep. Bob Menendez) Had a great visit to my district to push issue. Arizona lawsuit on
redistricting is before the Dept. of Justice. DoJ has 60 days to review case, until August 6. Wants VP to
weigh in with DoJ. Also, wants VP to participate in conference call on August 6 on Arizona case (34th
anniversary of the passage of the Voting Rights Act). VP - not sure what I can do with respect to DoJ,
not subject to political considerations -- but will check on status. Mrs. Gore will be in Arizona on
Aug. 6. Donna Brazile will follow up with Rep. Pastor on Mrs. Gore trip/possible participation. (No
firm commitment to participate in conf. call, but very favorably received).
C. Funding/Approps. (Rep. Jose Serrano) The Senate bill has about $3 billion provided for Census 2000,
House Commerce-Justice-State approps bill has $4.5 billion coming out of subcommittee. Need WH to
push for the House level of funding for Census. VP - I will do everything on this matter possible. I
can't imagine any request of yours on this issue would be inappropriate.
V. Other issues
A. Puerto Rico/SSI payments (Rep. Carlos Romero-Barcelo) Need safety net for people in territories with
Medicaid/SSI/veterans payments. There is legislation to expand coverage and bring equity to territories.
Would like support for this legislation. VP - I will examine the legislation and get back to you. I want
to review the other issues and dynamics of situation.
B. Immigration (Rep. Luis Guttierez) Gutierrez raised issues focusing on the naturalization backlog,
NACARA, and Cuban nationals. (I did my best to follow his points, but wasn't very successful. Janet is
up on his Rep. Gutierrez's focus on this front, so I'll defer to her on a more intelligent rundown of the
points he offered. Rep. Underwood (Guam) talked about SSI payments for citizens of territories and
mentioned that the Northern Mariana Islands are the only territory that receive SSI benefits. VP pretty
much read talking points that were prepared by Irene Bueno.
C. Colorado River/Uranium pollution (Rep. Grace Napolitano) Would like VP staff to meet with her and
others on the situation with the Colorado river and uranium content. VP . my staff will work with you on
this. (1 check in with CEQ and set up a meeting with Rep. Napolitano)
D. Rep. Jose Serrano questions for VP Rep. Serrano gave the VP a letter with some questions on
different issues (environmental justice, Vieques, Cuba policy, and Puerto Rico status). I will route the
letter for review.
Message Sent To:
Maria Echaveste/WHO/EOP@EOP
Ron Klain/OVP@OVP
Janet Murguia/WHO/EOP@EOP
Moe Vela/OVP@OVP
Monica M. Dixon/OVP@OVP
David W. Beier/OVP@OVP
Jonathan H. Schnur/OPD/EOP@EOP
Irene Bueno/OPD/EOP@EOP
Jeffrey L. Farrow/WHO/EOP@EOP
Karen Tramontano/WHO/EOP@EOR
Robin J. Bachman/WHO/EOP@EOP
Sarah A. Bianchi/OVP@OVP
Alvin Brown/OVP@OVP
Jonathan Weiss/OVP@OVP
Lisa Green/OPD/EOP@EOP
Brian A. Barreto/OPD/EOP@EOP
Lawrence J. Stein/WHO/EOP@EOP
Charles M. Brain/WHO/EOP@EOP
Laura M. Quinn/OVP@OVP
Message Copied To:
Kay Casstevens/OVP@OVP
Marjorie Tarmey/WHO/EOP@EOP
Erica R. Morris/WHO/EOP@EOP
Christina J. Cabral/OVP@OVP
David R Thomas/OVP@OVP
William T. Glunz/OVP@OVP
Alejandro G. Cabrera/OVP@OVP
Anthony R. Bernal/OVP@OVP
Dan J. Taylor/OVP@OVP
Martha Foley/WHO/EOP@EOP
Beth A. Viola/CEQ/EOP@EOP
Mindy E. Myers/WHO/EOP@EOP
Joel K. Wiginton/WHO/EOP@EOP
Lisa A. Berg/OVP@OVP
Wendy Hartman/OVP@OVP
Broderick Johnson/WHO/EOP@EOP
Lisa M. Kountoupes/WHO/EOP@EOP
Eric R. Anderson AT gore-dc@ccmail
Rick Remish at gore-dc@CCMAIL
NMVC
NEW MARKETS VENTURE CAPITAL LEGISLATION
DISCUSSION DRAFT
for bill
To amend the Small Business Act and Small Business Investment Act of 1958.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled.
New Markets Venture Capital Program
Section 101. New Markets Venture Capital Program. Title III -- SMALL BUSINESS
INVESTMENT COMPANIES of the Small Business Investment Act of 1958 (15 U.S.C.
661 et seq.) is amended by:
(1) striking the words "SMALL BUSINESS INVESTMENT COMPANIES" after TITLE III;
(2) inserting in lieu thereof "INVESTMENT DIVISION PROGRAMS";
(3) inserting "PART A - SMALL BUSINESS INVESTMENT COMPANIES" before
section 301; and
(4) adding the following at the end of section 320:
"PART B - NEW MARKETS VENTURE CAPITAL PROGRAM
Sec. 350. DEFINITIONS
As used in this part --
(1) the terms "New Markets Venture Capital company" and "NMVC company"
mean a company that has been approved by the Administration under section 353(e) to
operate under the New Markets Venture Capital Program and that has entered into a
participation agreement with the Administration; and
(2) the term "low- or moderate-income geographies" means-
(A) any population census tract if :
(i) the poverty rate for such tract is at least 20%, or
(ii) (x) in the case of a tract located within a metropolitan area, the
median family income for such tract does not exceed the greater of 80% of the statewide
median family income or 80% of the metropolitan-area median family income or (y) in
the case of a tract not located within a metropolitan area, the median family income for
such tract does not exceed 80% of the statewide median family income, and
(B) any area located within:
(i) a HUBZone (as defined in 13 CFR § 126.103),
(ii) an Urban Empowerment Zone or Urban Enterprise
Community (as designated by the Secretary of the Department of Housing and Urban
Development), or
(iii) a Rural Empowerment Zone or Rural Enterprise Community
(as designated by the Secretary of the Department of Agriculture).
In the case of an area which is not tracted for population census tracts, the
equivalent county division as defined by the Bureau of the Census for purposes of
defining poverty areas shall be used for purposes of determining poverty rate and median
family income.
(3) the term "participation agreement" means an agreement between the
Administration and a New Markets Venture Capital company, detailing the company's
operating plan and investment criteria and requiring that at least 80% of the company's
investments be made in smaller enterprises which are located in those low- or moderate-
income geographies defined in paragraph 2(A) of this section.
(4) the term "developmental venture capital" means capital invested in businesses,
with a primary objective of fostering economic development in low- or moderate-income
geographies.
Sec. 351. PURPOSES
The purposes of the New Markets Venture Capital Program are --
(1) to promote economic development and the creation of wealth and job
opportunities in low- or moderate-income geographies and among individuals living in
such geographies by encouraging developmental venture capital investments in smaller
enterprises primarily located within low- or moderate-income geographies; and
(2) to establish a developmental venture capital program to be
administered by the Small Business Administration --
(A) to enter into a participation agreement with each NMVC
company,
(B) to guarantee debentures of each NMVC company to enable
each such company to make developmental venture capital investments in smaller
enterprises within low- or moderate-income geographies, and
(C) to make grants to each NMVC company for the purpose of
providing marketing, management or other operational assistance to smaller enterprises
financed, or expected to be financed, by such company.
Sec. 352. PROGRAM ESTABLISHMENT
There is established a New Markets Venture Capital Program, under which the
Administration may --
(1) enter into a participation agreement with each NMVC company for the
purposes stated in section 351;
(2) guarantee debentures issued by each NMVC company as provided in
section 354; and
(3) make grants to each NMVC company as provided in section 355.
Sec. 353. SELECTION OF NMVC COMPANIES
(a) ELIGIBILITY TO APPLY. --A company shall be eligible to apply to
participate in the New Markets Venture Capital Program if it --
(1) is a newly formed for-profit entity, which may be a newly formed for-
profit subsidiary of an existing entity;
(2) has a management team with experience in community development
financing or relevant venture capital financing;
in low mark Suzysha
(3) has economic development as one of its primary objectives; and
(4) files its application within a time period established by the
Administration.
(b) APPLICATIONS. --As part of its application for participation in the New
Markets Venture Capital Program, each applicant shall provide the Administration with --
(1) a business plan that describes how the applicant will make successful
developmental venture capital investments in low- or moderate-income geographies
within identified geographic areas;
(2) the community development finance or relevant venture capital
qualifications and general reputation of the company's management;
(3) a description of how the applicant will interface with community
organizations;
- a days L I how the applicant Suck to send
(4) a proposal describing how grant funds provided under this part would
difficult
provide marketing, management or other operational assistance to smaller enterprises
to frince
expected to be financed by the company;
buman
(5) measurement criteria by which to evaluate the company's performance
in meeting program objectives;
(6) the management and financial strength of any parent or affiliated firms,
or any firms essential to the success of the NMVC company's business plan; and
(7) such other information as the Administration may request.
(c) SELECTION CRITERIA FOR CONDITIONAL APPROVAL. -- The
Administration shall review the applications and shall select companies to be
conditionally approved to operate under the New Markets Venture Capital Program. The
selection shall be based upon the merits of the application and each company's proposed
geographic area of investment so as to promote investment nationwide. The selection
criteria shall include:
(1) the likelihood that the applicant will meet the goals of its business plan;
(2) the experience and background of the company's management team;
(3) the need for developmental venture capital investments within the
investment areas;
(4) the extent to which the applicant will concentrate its activities on
serving its investment areas;
(5) the likelihood that the applicant will be able to satisfy the conditions
under subsection (d);
(6) the extent to which the proposed activities will expand economic
opportunities within the investment areas; and
(7) other factors deemed appropriate by the Administration.
(d) CONDITIONAL APPROVAL.-The Administration shall give each
conditionally approved company a period of time, not to exceed 24 months, to satisfy the
following two conditions --
(1) Capital Requirement. Each company must raise at least $5 million of
contributed capital or binding capital commitments from one or more investors (other
than an agency of the Federal government) which meet criteria established by the
Administration; and
(2) Operational Assistance Matching Requirement.
(A) In order to provide marketing, management or other operational
assistance to the smaller enterprises expected to be financed by the company, each
company:
(i) must have binding commitments (for contribution in cash
or in-kind) from any source(s) other than the Administration which meet criteria
established by the Administration, payable or available over a multi-year period
acceptable to the Administration (not to exceed 10 years), in an amount equal to 30% of
the capital and commitments raised under subsection (d)(1); or
(ii) must have purchased an annuity from an insurance
company acceptable to the Administration, using funds (other than the funds raised to
satisfy subsection (d)(1)) from any source other than the Administration, which would
yield cash payments over a multi-year period acceptable to the Administration (not to
exceed 10 years), in an amount equal to 30% of the capital and commitments raised under
subsection (d)(1); or
(iii) must have binding commitments (for contribution in
cash or in-kind) of the type described in subsection (d)(2)(A)(i) and must have purchased
an annuity of the type described in subsection (d)(2)(A)(ii), which in the aggregate make
available, over a multi-year period acceptable to the Administration (not to exceed 10
years), an amount equal to 30% of the capital and commitments raised under subsection
(d)(1); or
(B) In the discretion of the Administrator and based upon a
showing of special circumstances and good cause, the Administrator may consider an
applicant to have satisfied the requirements of this subsection (d)(2) if it has a viable plan
that reasonably projects its capacity to raise the amount (in cash or in-kind) required
under subsection (d)(2)(A).
(e) APPROVAL TO OPERATE AS AN NMVC COMPANY. -- The
Administration shall grant final approval to operate as an NMVC company to any
company selected under subsection (c) that --
(1) has satisfied the conditions under subsection (d); and
(2) has entered into a participation agreement with the Administration.
Sec. 354. DEBENTURES
The Administration is authorized, when authorized in appropriations Acts, to
guarantee the timely payment of principal and interest as scheduled on debentures issued
by NMVC companies. Such guarantees may be made by the Administration on such
terms and conditions as it deems appropriate. The full faith and credit of the United
States is pledged to the payment of all amounts which may be required to be paid under
any guarantee under this part. Such debentures may be issued for a term of not to exceed
fifteen years and shall bear interest at a rate approved by the Administration. The total
face amount of guaranteed debentures that may be outstanding at any one time shall not
exceed 150 percent of the contributed capital of the NMVC company, as determined by
the Administration. Contributed capital shall include capital that is deemed to be Federal
funds contributed by an investor other than an agency of the Federal government. The
debentures shall also contain such other terms as the Administration may require.
Sec. 355. OPERATIONAL ASSISTANCE GRANTS
(a) GRANTS. -- The Administration is authorized to make grants to each NMVC
company subject to the following:
(1) IN GENERAL. -Each NMVC company shall be eligible to receive
grants to be paid upon the direction of the Administration over a multi-year period not to
exceed 10 years, containing such terms as the Administration may require, to provide
marketing, management or other operational assistance to smaller enterprises financed, or
expected to be financed, by the NMVC company.
(2) GRANT AMOUNT. The amount of the grant(s) provided by the
Administration to each NMVC company under this subsection (a) shall be equal to the
NMVC company's matching contribution (in cash or in-kind) under section 353(d)(2)
unless the Administration determines, in the best interests of the program, that the
grant(s) should be paid despite the NMVC company's inability to provide the matching
contribution.
(3) PRO RATA REDUCTIONS. - If the amount made available to carry out
this section is insufficient for the Administration to provide grants in the amounts
required under subsection (a)(2), the Administration shall make pro rata reductions in the
amounts otherwise payable to each NMVC company under such subsection.
(b) SUPPLEMENTAL GRANTS. - The Administration is authorized to provide
supplemental grants to any NMVC company, containing such terms as the
Administration may require, to provide additional marketing, management or other
operational assistance to smaller enterprises financed, or expected to be financed, by the
NMVC company. The Administration may require, as a condition of any supplemental
grant made under this subsection (b), that the NMVC company provide a matching
contribution (in cash or in-kind) from sources other than the Administration equal to the
amount of the supplemental grant.
Sec. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES
(a) The Administration is authorized to issue trust certificates representing
ownership of all or a fractional part of debentures issued by NMVC companies and
guaranteed by the Administration under this Act: Provided, That such trust certificates
shall be based on and backed by a trust or pool approved by the Administration and
composed solely of guaranteed debentures.
(b) The Administration is authorized, upon such terms and conditions as are
deemed appropriate, to guarantee the timely payment of the principal of and interest on
trust certificates issued by the Administration or its agent for purposes of this section.
Such guarantee shall be limited to the extent of principal and interest on the guaranteed
debentures which compose the trust or pool. In the event that a debenture in such trust or
pool is prepaid, or in the event of default of a debenture, the guarantee of timely payment
of principal and interest on the trust certificates shall be reduced in proportion to the
amount of principal and interest such prepaid debenture represents in the trust or pool.
Interest on prepaid or defaulted debentures shall accrue and be guaranteed by the
Administration only through the date of payment of the guarantee. During the term of the
trust certificate, it may be called for redemption due to prepayment or default of all
debentures.
(c) The full faith and credit of the United States is pledged to the payment of all
amounts which may be required to be paid under any guarantee of such trust certificates
issued by the Administration or its agent pursuant to this section.
(d) The Administration shall not collect a fee for any guarantee of a trust
certificate under this section: Provided, That nothing herein shall preclude any agent of
the Administration from collecting a fee approved by the Administration for the functions
described in subsection (f)(2) of this section.
(e)
(1) In the event the Administration pays a claim under a guarantee issued
under this section, it shall be subrogated fully to the rights satisfied by such payment.
(2) No State or local law, and no Federal law, shall preclude or limit the
exercise by the Administration of its ownership rights in the debentures residing in a trust
or pool against which trust certificates are issued.
(f)
(1) The Administration may provide for a central registration of all trust
certificates sold pursuant to this section.
(2) The Administrator may contract with an agent or agents to carry out on
behalf of the Administration the pooling and the central registration functions of this
section including, notwithstanding any other provision of law, maintenance on behalf of
and under the direction of the Administration, such commercial bank accounts or
investments in obligations of the United States as may be necessary to facilitate trusts or
pools backed by debentures guaranteed under this Act, and the issuance of trust
certificates to facilitate such poolings. Such agent or agents shall provide a fidelity bond
or insurance in such amounts as the Administration determines to be necessary to fully
protect the interests of the Government.
(3) The Administrator is authorized to regulate brokers and dealers in trust
certificates sold pursuant to this section.
(4) Nothing in this subsection shall prohibit the use of a book-entry or
other electronic form of registration for trust certificates.
Sec. 357. FEES
Except as provided under section 356(d), the Administration may charge such fees
as it deems appropriate with respect to any guarantee or grant issued under this part.
Sec. 358. BANK PARTICIPATION
Any national bank, or any member bank of the Federal Reserve System or
nonmember insured bank to the extent permitted under applicable State law, may invest
in any 1 or more NMVC companies, or in any entity established to invest solely in
NMVC companies, except that in no event shall the total amount of such investments of
any such bank exceed 5 percent of the capital and surplus of the bank.
Sec. 359. FEDERAL FINANCING BANK
Section 318 does not apply to any debenture issued under this part by an NMVC
company.
Sec. 360. REPORTING REQUIREMENTS
Each NMVC company shall provide such information as the Administration may
request, including reporting on the measurement criteria that the NMVC company
proposed in its program application.
Sec. 361. EXAMINATIONS
Each NMVC company shall be subject to examinations made at the direction of
the Investment Division of the Administration, which may be conducted with the
assistance of a private sector entity that has both the qualifications to conduct and the
expertise in conducting such examinations. The cost of such examinations, including the
compensation of the examiners, may in the discretion of the Administration be assessed
against the company examined and when so assessed shall be paid by such company.
Fees collected under this section shall be deposited in the account for salaries and
expenses of the Administration and are authorized to be appropriated solely to cover the
costs of examinations and other program oversight activities.
Sec. 362. INJUNCTIONS AND OTHER ORDERS
(a) Whenever, in the judgment of the Administration, an NMVC company or any
other person has engaged or is about to engage in any acts or practices which constitute or
will constitute a violation of any provision of this Act, or of any rule or regulation under
this Act, or of any order issued under this Act, the Administration may make application
to the proper district court of the United States or a United States court of any place
subject to the jurisdiction of the United States for an order enjoining such acts or
practices, or for an order enforcing compliance with such provision, rule, regulation, or
order, and such courts shall have jurisdiction of such actions and, upon a showing by the
Administration that such NMVC company or other person has engaged or is about to
engage in any such acts or practices, a permanent or temporary injunction, restraining
order, or other order, shall be granted without bond.
(b) In any such proceeding the court as a court of equity may, to such extent as it
deems necessary, take exclusive jurisdiction of the NMVC company and the assets
thereof, wherever located; and the court shall have jurisdiction in any such proceeding to
appoint a trustee or receiver to hold or administer under the direction of the court the
assets so possessed.
(c) The Administration shall have authority to act as trustee or receiver of the
NMVC company. Upon request by the Administration, the court may appoint the
Administration to act in such capacity unless the court deems such appointment
inequitable or otherwise inappropriate by reason of the special circumstances involved.
Sec. 363. UNLAWFUL ACTS AND OMISSIONS BY OFFICERS, DIRECTORS,
EMPLOYEES, OR AGENTS; BREACH OF FIDUCIARY DUTY
(a) Whenever an NMVC company violates any provision of this Act or regulation
issued thereunder by reason of its failure to comply with the terms thereof or by reason of
its engaging in any act or practice which constitutes or will constitute a violation thereof,
such violation shall be deemed to be also a violation and an unlawful act on the part of
any person who, directly or indirectly, authorizes, orders, participates in, or causes, brings
about, counsels, aids, or abets in the commission of any acts, practices, or transactions
which constitute or will constitute, in whole or in part, such violation.
(b) It shall be unlawful for any officer, director, employee, agent, or other
participant in the management or conduct or the affairs of an NMVC company to engage
in any act or practice, or to omit any act, in breach of his fiduciary duty as such officer,
director, employee, agent, or participant, if, as a result thereof, the NMVC company has
suffered or is in imminent danger of suffering financial loss or other damage.
(c) Except with the written consent of the Administration, it shall be unlawful -
(1) for any person hereafter to take office as an officer, director, or
employee of an NMVC company, or to become an agent or participant in the conduct of
the affairs or management of an NMVC company, if -
(A) he has been convicted of a felony, or any other criminal
offense involving dishonesty or breach of trust, or
(B) he has been found civilly liable in damages, or has been
permanently or temporarily enjoined by order, judgment, or decree of a court of
competent jurisdiction, by reason of any act or practice involving fraud or breach of trust;
or
(2) for any person to continue to serve in any of the above-described
capacities, if -
(A) he is hereafter convicted of a felony, or any other criminal
offense involving dishonesty or breach of trust, or
(B) he is hereafter found civilly liable in damages, or is
permanently or temporarily enjoined by an order, judgment, or decree of a court of
competent jurisdiction, by reason of any act or practice involving fraud or breach of trust.
(d) The Administration may serve upon any person identified in this section a
written notice of its intention to remove him from office whenever, in the opinion of the
Administration, such person ---
(1) has willfully and knowingly committed any substantial violation of-
(A) this Act,
(B) any regulation issued under this Act, or
(C) a cease-and-desist order which has become final, or
(2) has willfully and knowingly committed or engaged in any act,
omission, or practice which constitutes a substantial breach of his fiduciary duty, and that
such violation or such breach of fiduciary duty is one involving personal dishonesty on
the part of such person.
(c) The Administration may remove or suspend any person upon whom the
Administration has served a notice under subsection (d) by following the procedures set
forth in section 313 of this Act.
Sec. 364. MISCELLANEOUS
The Administration is authorized to issue such regulations as it deems necessary
to carry out the provisions of this part in accordance with its purposes.
Sec. 365. AUTHORIZATIONS
The Administration is hereby authorized to be appropriated such subsidy budget
authority as may be necessary to guarantee up to $100 million of debentures, and up to
$30 million to make grants, for the purposes pursuant to this part, to remain available
until expended. This authority shall be in effect for the period commencing with fiscal
year 2000 through fiscal year 2005."
Section 102. Conforming Amendment to Small Business Act.
Section 20(e)(1)(C) of the Small Business Act (15 U.S.C. 631 note) is amended
by inserting the words "part A of" before "title III".
Section 103. Bankruptcy Exemption for New Markets Venture Capital Companies.
Section 109(b)(2) of title 11, United States Code, is amended by inserting after
"homestead association," the following: "a New Markets Venture Capital company as
defined in section 350 of the Small Business Investment Act of 1958,".
Section 104. Federal Savings Associations.
Section 1464 (c) (4) of title 12, United States Code, is amended by adding at the
end thereof the following: "(F) New Markets Venture Capital companies. A Federal
savings association may invest in stock, obligations, or other securities of any New
Markets Venture Capital company as defined in section 350 of the Small Business
Investment Act of 1958. A Federal savings association may not make any investment
under this subparagraph if its aggregate outstanding investment under this subparagraph
would exceed 5 percent of the capital and surplus of such savings association."
Final Draft Version (TW-1) - 8/26/99
SBIC 1998 EQUITY AND NEAR-EQUITY INVESTMENTS OF $1 MM AND LESS
IN LOW AND MODERATE ZONES
Total capital invested equaled $58,955,856, including approximately $3MM invested by Developmental SBICs.
This is 1.84% of total SBIC investments made during 1998.
Four state, CA, TX, NY and MA, accounted for 55% of the $59 million.
California alone accounted for 28% of the $59 million, with Silicone Valley accounting for 81% of that total.
35 states received a total of $1 MM or less in financing.
28 states received a total of $500 K or less in financing.
20 states received no capital at all.
Only 2 investments were in rural areas. These investments totaled $1.1MM, 1.9% of the total capital invested.
Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
002. memo
Memorandum to the President From Gene Sperling (4 pages)
03/29/1999
P5
COLLECTION:
Clinton Presidential Records
Policy Development
Lisa Green
OA/Box Number: 20586
FOLDER TITLE:
[New Markets Legislation] [loose]
2012-0043-S
ms438
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
PI National Security Classified Information [(a)(1) of the PRAJ
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(h)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA|
RR. Document will be reviewed upon request.
SBIC 1998 EQUITY AND NEAR-EQUITY INVESTMENTS OF $1 MM AND LESS
(IN LOW AND MODERATE INCOME ZONES)
1
CA
$ 16,692,152
2TX
6,240,714
3NY
$ 4,685,472
4MA
$ 4,623,350
5
FL
$ 2,785,327
6
OH
$ 2,741,335
7
KS
$ 2,296,370
8MD
$ 2,220,000
9
PA
$ 1,950,000
10 TN
$ 1,519,045
11HI
$ 1,411,111
12
MO
$ 1,200,001
13
LA
$ 1,200,000
14 KY
$ 1,100,000
15 UT
$ 1,030,858
16 NH
$ 1,000,000
17 NJ
$ 850,000
18
VA
$ 800,000
19
AZ
$ 780,880
20
ND
$ 751,040
21
CO
$ 573,448
22 NC
$ 519,499
23 MN
$ 500,000
24
OK
$ 460,001
25 CT
$ 400,000
26AL
$ 300,000
27IL
$ 176,220
28
DC
$ 100,000
29 OR
$ 49,032
30
WA
1
TOTAL
$ 58,955,856
TOTAL OF TOP FOUR STATES
28.31%
10.59%
7.95%
7.84%
4.72%
4.65%
3.90%
3.77%
3.31%
2.58%
2.39%
2.04%
2.04%
1.87%
1.75%
1.70%
1.44%
1.36%
1.32%
1.27%
0.97%
0.88%
0.85%
0.78%
0.68%
0.51%
0.30%
0.17%
0.08%
0.00%
100.00%
54.69%
153
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63886
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