Rep. Andy Barr
The U.S. House Financial Services Committee on July 22 approved bipartisan legislation led by U.S. Rep. Andy Barr (R-KY) that would increase the threshold for private fund advisers to register with the U.S. Securities and Exchange Commission (SEC).
“Instead of investing resources in compliance costs and unnecessary regulations, we want private fund advisors investing in small businesses, job creation, and innovators,” Rep. Barr said. “This bill unleashes capital for Main Street, and I urge the full House to pass it.”
The committee voted 51-2 to advance the Small Business Investor Capital Access Act, H.R. 3673, to the full chamber for consideration.
If enacted, H.R. 3673, which Rep. Barr sponsored on June 3 with lead original cosponsor U.S. Rep. Nydia Velázquez (D-NY), would increase the exemption from the registration threshold for certain investment advisers of private funds to reflect the change in inflation.
Under the 2010 Dodd Frank law, the current exemption for private fund advisors registering with the SEC is for firms up to $150M, according to a bill summary provided by Rep. Barr’s staff.
“Securing financing remains a major hurdle for many small businesses, especially in communities that lack strong connections to traditional lenders,” said Rep. Velázquez. “This legislation helps open the door to more private capital, giving entrepreneurs the support they need to grow and hire.”