{ "id": "R42565", "type": "CRS Report", "typeId": "R", "number": "R42565", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source_dir": "crsreports.congress.gov", "title": "SBA New Markets Venture Capital Program", "retrieved": "2021-04-13T04:03:27.419313", "id": "R42565_20_2021-03-11", "formats": [ { "filename": "files/2021-03-11_R42565_5f61fba1a59babde711068a8d6c9a532f95fa556.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R42565/20", "sha1": "5f61fba1a59babde711068a8d6c9a532f95fa556" }, { "format": "HTML", "filename": "files/2021-03-11_R42565_5f61fba1a59babde711068a8d6c9a532f95fa556.html" } ], "date": "2021-03-11", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R42565", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 607563, "date": "2019-11-13", "retrieved": "2019-12-13T15:25:25.209871", "title": "SBA New Markets Venture Capital Program", "summary": "Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program, which is no longer active, is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association\u2019s (SBA\u2019s) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area.\nSpecialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance grants, which are awarded on a dollar-to-dollar matching basis. Six companies participated in the NMVC program. \nThe NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continued to operate, with the number and amount of financing declining in recent years as the program\u2019s initial investments expired and NMVC companies increasingly engaged only in additional follow-on financings with the small businesses in their portfolios. The NMVC program\u2019s active unpaid principal balance peaked at $68.1 million in FY2008, and then fell each year thereafter until reaching $0 in FY2018.\nThis report examines the NMVC program\u2019s legislative origins and describes the program\u2019s eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA\u2019s financial assistance to NMVC companies and provides program statistics. \nThe report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicated other SBA programs and is relatively expensive, (2) the rescission of the program\u2019s unobligated funding in 2003, and (3) congressional efforts to provide the program additional funds.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R42565", "sha1": "870e8e2baa1cc86318af79679bde7c084851546c", "filename": "files/20191113_R42565_870e8e2baa1cc86318af79679bde7c084851546c.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R42565", "sha1": "971763004e9d413f65efe18e76277d0573900b69", "filename": "files/20191113_R42565_971763004e9d413f65efe18e76277d0573900b69.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 589800, "date": "2019-01-11", "retrieved": "2019-04-17T14:35:10.944277", "title": "SBA New Markets Venture Capital Program", "summary": "Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program, which is no longer active, is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association\u2019s (SBA\u2019s) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area.\nSpecialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance grants, which are awarded on a dollar-to-dollar matching basis. Six companies participated in the NMVC program. \nThe NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continued to operate, with the number and amount of financing declining in recent years as the program\u2019s initial investments expired and NMVC companies increasingly engaged only in additional follow-on financings with the small businesses in their portfolios. The NMVC program\u2019s active unpaid principal balance peaked at $698 million in FY2008, and then fell each year thereafter until reaching $0 in FY2018.\nThis report examines the NMVC program\u2019s legislative origins and describes the program\u2019s eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA\u2019s financial assistance to NMVC companies and provides program statistics. \nThe report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicated other SBA programs and is relatively expensive, (2) the rescission of the program\u2019s unobligated funding in 2003, and (3) congressional efforts to provide the program additional funds.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R42565", "sha1": "7ed5dd101236367470a767e5b58441cbac9994ae", "filename": "files/20190111_R42565_7ed5dd101236367470a767e5b58441cbac9994ae.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R42565", "sha1": "7ebd751033bc212232da65606a3bc6b3d2a50a75", "filename": "files/20190111_R42565_7ebd751033bc212232da65606a3bc6b3d2a50a75.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 584748, "date": "2018-08-31", "retrieved": "2018-10-05T22:33:34.083382", "title": "SBA New Markets Venture Capital Program", "summary": "Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association\u2019s (SBA\u2019s) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area.\nSpecialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance grants, which are awarded on a dollar-to-dollar matching basis. Six NMVC companies are currently participating in the program.\nThe NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continues to operate, with the number and amount of financing declining in recent years as the program\u2019s initial investments expire and NMVC companies engage only in additional follow-on financings with the small businesses in their portfolios.\nThis report examines the NMVC program\u2019s legislative origins and describes the program\u2019s eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA\u2019s financial assistance to NMVC companies and provides program statistics. \nThe report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicates other SBA programs and is relatively expensive, (2) the rescission of the program\u2019s unobligated funding in 2003, and (3) congressional efforts to provide the program additional funds.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R42565", "sha1": "176b52b97838d72c6d591dc6c160db970c6e3fd1", "filename": "files/20180831_R42565_176b52b97838d72c6d591dc6c160db970c6e3fd1.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R42565", "sha1": "ba2564c4ee9c3bd4ca57eb4abe4bf4491b3e8cd0", "filename": "files/20180831_R42565_ba2564c4ee9c3bd4ca57eb4abe4bf4491b3e8cd0.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 457762, "date": "2016-12-21", "retrieved": "2016-12-22T16:27:22.794764", "title": "SBA New Markets Venture Capital Program", "summary": "Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association\u2019s (SBA\u2019s) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area.\nSpecialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance grants, which are awarded on a dollar-to-dollar matching basis. Six NMVC companies are currently participating in the program.\nThe NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continues to operate, with the number and amount of financing declining in recent years as the program\u2019s initial investments expire and NMVC companies engage only in additional follow-on financings with the small businesses in their portfolios.\nThis report examines the NMVC program\u2019s legislative origins and describes the program\u2019s eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA\u2019s financial assistance to NMVC companies and provides program statistics. \nThe report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicates other SBA programs and is relatively expensive, (2) the rescission of the program\u2019s unobligated funding in 2003, and (3) congressional efforts to provide the program additional funds.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R42565", "sha1": "694f594c474d1d298216869df5059fdb8fe1efff", "filename": "files/20161221_R42565_694f594c474d1d298216869df5059fdb8fe1efff.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R42565", "sha1": "bcde3594befc696b17d6da66ca90b58797c821bd", "filename": "files/20161221_R42565_bcde3594befc696b17d6da66ca90b58797c821bd.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 449357, "date": "2016-02-01", "retrieved": "2016-04-06T17:20:42.841133", "title": "SBA New Markets Venture Capital Program", "summary": "Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association\u2019s (SBA\u2019s) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational training assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area.\nSpecialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance training grants, which are awarded on a dollar-to-dollar matching basis. Six NMVC companies are currently participating in the program.\nThe NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance training grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continues to operate, with the number and amount of financing declining in recent years as the program\u2019s initial investments expire and NMVC companies engage only in additional follow-on financings with the small businesses in their portfolios.\nThis report examines the NMVC program\u2019s legislative origins and describes the program\u2019s eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA\u2019s financial assistance to NMVC companies and provides program statistics. \nThe report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicates other SBA programs and is relatively expensive, (2) the rescission of the program\u2019s unobligated funding in 2003, and (3) congressional efforts to provide the program additional funds.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R42565", "sha1": "5891af79b588c851848f6cfef0dcedf479233648", "filename": "files/20160201_R42565_5891af79b588c851848f6cfef0dcedf479233648.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R42565", "sha1": "2df80b41fce0efda570fb275c56eecf4e5556372", "filename": "files/20160201_R42565_2df80b41fce0efda570fb275c56eecf4e5556372.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2636, "name": "Small Business Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809865/", "id": "R42565_2015Mar10", "date": "2015-03-10", "retrieved": "2016-03-19T13:57:26", "title": "SBA New Markets Venture Capital Program", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150310_R42565_de68700411d2c59936fbadadaf29ce6c3aed66a8.pdf" }, { "format": "HTML", "filename": "files/20150310_R42565_de68700411d2c59936fbadadaf29ce6c3aed66a8.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815866/", "id": "R42565_2013Jan30", "date": "2013-01-30", "retrieved": "2016-03-19T13:57:26", "title": "SBA New Markets Venture Capital Program", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130130_R42565_590538567f5d6ceae6be45a13f3a04daba9ca6c0.pdf" }, { "format": "HTML", "filename": "files/20130130_R42565_590538567f5d6ceae6be45a13f3a04daba9ca6c0.html" } ], "topics": [] } ], "topics": [ "American Law", "Economic Policy" ] }