Small Business Investor Capital Access Act

Small Business Investor Capital Access Act

This bill requires the Securities and Exchange Commission (SEC) to adjust annually for inflation the dollar amount of an exemption from registration requirements for investment advisors of private funds. Currently, investment advisors of private funds of less than $150 million in assets under management are exempt. The bill would require the SEC to adjust that amount annually based on the change in the Consumer Price Index.

Bill 118 HR 2578, also known as the Small Business Investor Capital Access Act, aims to make it easier for small businesses to access capital by expanding the pool of eligible investors. The bill proposes to amend the Small Business Investment Act of 1958 to increase the maximum amount of leverage that the Small Business Administration (SBA) can provide to Small Business Investment Companies (SBICs) from $150 million to $175 million.

Additionally, the bill seeks to streamline the application process for SBICs and reduce the regulatory burden on these small business investors. It also includes provisions to encourage more private sector investment in small businesses by allowing SBICs to issue preferred stock and debt securities.

Overall, the Small Business Investor Capital Access Act aims to stimulate economic growth by providing small businesses with greater access to the capital they need to expand and create jobs. The bill has received bipartisan support in Congress and is seen as a positive step towards supporting small business growth in the United States.