Comment Letter to House Capital Markets Subcommittee re: “The Future of American Capital: Strengthening Public and Private Markets by Increasing Investor Access and Facilitating Capital Formation”

Earlier this week, the House Financial Services Subcommittee on Capital Markets examined 36 bills intended to help small businesses raise capital and to expand the definition of “accredited investor” under SEC regulation, including a draft bill from U.S. Rep. Andrew Garbarino (R-NY) that would fully exempt BDCs from the acquired fund fees and expense (AFFE) rule, as well as a draft bill from U.S. Rep. Andy Barr (R-KY) to raise the AUM threshold for private fund registration with the SEC (from the current $150 million). SBIA has worked closely with these offices on the two bills. SBIA sent a letter to the committee ahead of the hearing emphasizing key reforms needed to further strengthen the U.S. capital markets, facilitate capital formation for small businesses, and create more opportunities to invest in both the public and private markets. SBIA also joined a coalition letter urging expansion of the accredited investor definition.