Small Business Investor Capital Access Act
Right-size the rules so small funds can keep investing in small business.
$150M → $175M
The threshold this bill raises
then indexes to inflation
2010
Year it was set
never raised or indexed since
< 0.5%
Of all private equity assets
held by these funds, yet they carry the same compliance load as the giants
Why This Legislation Is Needed
Under the 2010 Dodd-Frank Act, a private fund adviser with less than $150 million in assets under management is exempt from registering with the Securities and Exchange Commission (SEC). The idea was sound: the smallest managers should not carry the same compliance load as the largest institutions.
But that $150 million line was set too low even in 2010, and it has never been raised or indexed for inflation. The economy has grown and private capital markets have evolved. The line has not moved. So managers who would have counted as “small” under an inflation-adjusted threshold now get swept into full SEC registration – not because they got large, but because the line stayed frozen.
The smallest funds are the least able to absorb that cost. Funds under the current threshold represent less than half a percent of the private equity industry’s total assets, yet they face the same reporting and compliance obligations as institutions many times their size. Those costs come straight out of the capital these funds exist to deploy into small businesses, startups, and underserved communities.
In Simple Terms: What the Bill Actually Does
The Small Business Investor Capital Access Act raises the exemption to $175 million right away and indexes it to inflation every 5 years, so it adjusts automatically over time. It lowers compliance costs for the smallest funds and lets more of their capital reach the small businesses they invest in. It does not change a single rule that applies to large institutions.
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Through Committee, Through the House, and Into the Senate
This reform has moved further than most. The House version cleared the Financial Services Committee, then passed the full House inside a larger capital markets package. A bipartisan Senate companion now carries it forward.
- Introduced
- Committee
- Passed the House
- Senate · Pending
| H.R. 3383 — House | S. 3880 — Senate | |
|---|---|---|
| Lead Sponsors |
Rep. Andy Barr (R-KY)
Rep. Nydia Velázquez (D-NY)
|
Sen. Ruben Gallego (D-AZ)
Sen. Mike Rounds (R-SD)
|
| Status |
Passed the full House on December 11, 2025, by a bipartisan vote of 302–123, as part of the INVEST Act (H.R. 3383), a larger capital markets package. |
Introduced March 2026.
Awaiting Senate action.
|
“This is a smart and necessary modernization of outdated regulation... This bill will reduce compliance costs for smaller funds and allow more capital to flow to America’s small businesses.”
Brett Palmer
President, Small Business Investor Alliance
Official statement
Small Business Investor Capital Access Act News Feed
SBIA Backs Senate Introduction of “Small Business Investor Capital Access Act”
SBIA Backs Senate Introduction of “Small Business Investor Capital Access Act” Legislation Will Promote New Fund Formation and Improve Capital Access for Small Businesses WASHINGTON, D.C. (March 16, 2026) – The Small Business Investor Alliance (SBIA), the national association representing lower middle market private equity investors, has expressed strong support for the Senate introduction of…
Read Full ReleaseSBIA Applauds Committee Passage of the Small Business Investor Capital Access Act
The bill seeks to modernize the exemption from Securities and Exchange Commission (SEC) registration for certain private fund advisors by immediately raising the assets under management (AUM) threshold to $175 million and indexing the threshold to inflation thereafter.
Read Full ReleaseSBIA Backs “Small Business Investor Capital Access Act”
Legislation Will Promote New Fund Formation and Improve Capital Access for Small Businesses
Read Full ReleaseSBIA expresses support for “Small Business Investor Capital Access Act”
New bill would spur new fund formation to increase small business access to capital
Read Full ReleaseInvesting in Main Street Act
- Introduced
- Committee
- Passed House
- Senate · Pending
A 1958 law caps bank investment in small business funds at 5%, while banking regulators already allow 15%. This bill simply matches the two numbers while keeping regulatory oversight.
Access to Small Business Investor Capital Act
- Introduced
- Committee
- Passed House
- Senate · Pending
An SEC disclosure rule counts the same fees twice, making investments in publicly traded small business lenders appear more expensive than they are. This bill ensures investors receive accurate fee information.
Small Business Investor Alliance
529 14th Street, NW, Suite 400
Washington, DC 20045
Phone: 202-628-5055
The Small Business Investor Alliance is the premier organization of lower middle market private equity funds and investors.