Improving Capital Allocation for Newcomers Act of 2021

Improving Capital Allocation for Newcomers Act of 2021 [sic]

This bill revises qualification requirements for venture capital funds. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Currently, an investment firm qualifies as a venture capital fund if, among other requirements (1) the fund's securities are owned by 250 persons or less, and (2) the fund has $10 million or less in aggregate capital contributions and uncalled committed capital. The bill increases these amounts to 2000 persons and $150 million, respectively.

Bill 118 hr 2790, also known as the Improving Capital Allocation for Newcomers Act of 2021, aims to address the challenges faced by immigrants and refugees in accessing capital to start or expand businesses in the United States. The bill was introduced in the House of Representatives on May 5, 2021.

The key provisions of the bill include the establishment of a grant program to provide financial assistance to immigrant and refugee entrepreneurs. This program would be administered by the Small Business Administration (SBA) and would prioritize funding for businesses in underserved communities.

Additionally, the bill seeks to improve access to capital for immigrant and refugee entrepreneurs by expanding the eligibility criteria for SBA loan programs. This would allow more newcomers to qualify for loans to start or grow their businesses. Furthermore, the bill includes provisions to increase technical assistance and support services for immigrant and refugee entrepreneurs, such as business training and mentorship programs. These resources would help newcomers navigate the complexities of starting and running a business in the US. Overall, the Improving Capital Allocation for Newcomers Act of 2021 aims to support immigrant and refugee entrepreneurs in overcoming financial barriers and achieving success in the US business landscape. The bill is currently under review in the House of Representatives and has garnered bipartisan support for its efforts to promote economic empowerment and inclusion for newcomers.