1. Short title This Act may be cited as the New Business Preservation Act . 2. Definitions In this Act: (1) Approved State program The term approved State program means a State program that is approved by the Secretary in accordance with the standards established under section 3(b)(1). (2) Covered investment The term covered investment means an equity investment in a startup using amounts made available to carry out the covered programs. (3) Covered programs The term covered programs means the Program and the program carried out under section 4. (4) Equity investment The term equity investment — (A) means an investment for an ownership interest in an entity, the financial return with respect to which is principally aligned with the financial return of the plurality of ownership interests in the entity; and (B) includes a debt instrument that can be converted to an equity ownership interest in an entity based on future events. (5) Exit The term exit , with respect to a startup in which there is a covered investment, means— (A) the acquisition of the startup; (B) after an initial public offering with respect to the startup, the sale of a share of the startup that was obtained through the covered investment; or (C) the voluntary purchase of ownership interests by the startup, investors, or existing shareholders. (6) Federal contribution The term Federal contribution means a contribution made— (A) by a participating State to, or for the account of, an approved State program; and (B) with Federal funds allocated to the participating State by the Secretary. (7) Follow-on investment The term follow-on investment means a subsequent equity investment in a startup in which there was originally a separate and distinct equity investment under— (A) a program carried out under the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5701 et seq.)