Under the "Small Business Early-Stage Investment Program," which will provide $1 billion in grants for venture capital investments in certain industries--including life sciences, the SBA’s investments would be treated the same as investments by other limited partners in an investment fund, except that the SBA would not receive any control or voting rights with respect to the early-stage small business. Importantly, the new program protects the interest of the taxpayer by specifying that grants could only be awarded to investment companies that had already raised an equivalent amount of capital from private-sector sources. Ideally, over time, the SBA’s investment program will become self-sustaining as funds from successful small businesses are repaid into a revolving fund.

Small Business Early Stage Investment Program: Legislative Text
The Small Business Early Stage Investment Program would provide matching funds for investment companies who invest in small, high tech companies, including biotech firms.
Read the legislative text
Read BIO’s press release

Small Business Early Stage Investment Program: Summary of Program
The summary explains the criteria for investment companies, the process by which investment companies would apply and the manner in which the equity financing provided by the SBA could used.
Read the summary