S.Amdt. 3815

SA 3815, submitted by Mr. Banks, aims to change Section 149 of title 10, United States Code. Its purpose is to include equity investments in the Office of Strategic Capital's pilot program for capital assistance to support the industrial base.

The amendment proposes the following changes:

• Expanded Support: It allows the Director to use funds or other mechanisms to purchase, invest in, make pledges in, or acquire equity of an eligible entity, its parent, or its subsidiary entities. This includes acting as an investor in investment funds.

• Investment Rules: The Director must create criteria for holding, selling, or liquidating these investments based on the economic and national security interests of the United States.

• Legal Status: For the purpose of buying equity securities, the Office would be treated as an accredited investor and a qualified purchaser.

• Updated Definitions: The amendment changes the definition of capital assistance to include the purchase of or investment in equity, such as warrants, options, or other financing that the Director determines is substantially similar to equity financing.

• Waivers: It allows the Director to waive certain requirements if the Secretary of Defense determines an investment is vital to national security, or if the Director believes the rate of return on a portfolio of loans with equity features will exceed the yield on similar marketable securities.