Washington, D.C.— Today, U.S. Congressman Andy Barr (R-KY) and U.S. Congresswoman Nydia Velázquez (D-NY), reintroduced the Small Business Investor Capital Access Act. The bipartisan proposal increases the threshold for private fund advisers to register with the U.S. Securities and Exchange Commission (SEC). Currently, the exemption for SEC registration for private fund advisors is $150 million, as prescribed by the 2010 Dodd Frank law.
Barr’s proposal paves the way for more private fund managers to focus on investing in small businesses rather than navigating costly and complex SEC compliance. The timing is critical for small businesses: a May 2025 from the Federal Reserve survey showed that bank lending requirements have tightened. Private investment could help fill the gap. According to 2022 data from the American Investment Council, approximately 85% of businesses backed by private equity were small businesses—collectively employing 1.4 million Americans nationwide.
“One of my missions in Congress is to expand capital for small businesses, farmers, and other businesses throughout Kentucky,” said Congressman Barr, Chairman of the House Financial Services Subcommittee on Financial Institutions. “This bill is a perfect way for us to unleash the power of the private sector to help fuel the innovations, job opportunities, and industries of tomorrow.”
“Access to capital remains one of the biggest challenges facing small businesses, especially in communities that have long been overlooked by traditional lenders,” said Congresswoman Nydia M. Velázquez. “As Ranking Member of the House Small Business Committee, I’m committed to finding bipartisan solutions that help entrepreneurs grow and succeed. This bill is about making it easier for responsible private investors to support the entrepreneurs who drive job creation and economic growth in every corner of the country.”
“The original $150 million threshold was set too low and has never been adjusted to reflect economic growth or inflation,” said Brett Palmer, President of the Small Business Investor Alliance. “Representatives Barr and Velázquez are taking a crucial step to ensure that small businesses and the private fund industry can thrive without being held back by outdated regulations.”