; and (4) in the heading for subsection (dd), by striking or Private Equity Firms and inserting Private Equity Firms, or SBICs . 4. Calculation of leverage of small business investment companies that invest in SBIR or STTR participants Section 303(b)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 683(b)(2) ) is amended by adding at the end the following new subparagraph: (E) Investments in SBIR and STTR participants (i) In general Subject to clause (ii), in calculating the outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall exclude the amount of any investment made in a SBIR or STTR participant, if such investment is made in the first fiscal year after the date of enactment of this subparagraph or any fiscal year thereafter by a company licensed during the applicable fiscal year. (ii) Limitations (I) Amount of exclusion The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company. (II) Maximum investment A company shall not make an investment in any one SBIR or STTR participant in an amount equal to more than 20 percent of the private capital of that company. (III) Other terms The exclusion of amounts under clause (i) shall be subject to such terms as the Administrator may impose to ensure that there is no cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a )) with respect to purchasing or guaranteeing any debenture involved. (iii) Definitions In this subparagraph, the term SBIR or STTR participant means a small business concern that receives contracts or grants pursuant to section 9 of the Small Business Act. . 5. Encouraging participation in the mentor-protege program Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended by adding at the end the following: (tt) Encouraging participation in the mentor-Protege program The Administrator shall provide an increase to the past performance rating of any small business concern that has participated in