Small Business Investor Capital Access Act
- Bill Number
- H.R. 3673
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-08: Placed on the Union Calendar, Calendar No. 211.
- Last Updated
- 2026-03-22T22:29:18Z
AI-Generated Summary
Purpose This legislation updates the exemption threshold under the Investment Advisers Act of 1940 for certain investment advisers managing private funds, raising the asset threshold to account for inflation and adding a mechanism for future adjustments.
Key Provisions
- Increases the registration exemption threshold from $150,000,000 to $175,000,000 in assets under management.
- Requires the Securities and Exchange Commission (SEC) to adjust the threshold every five years based on changes in the Consumer Price Index for All Urban Consumers, rounding the result to the nearest multiple of $1,000,000.
- Applies specifically to advisers of private funds that qualify for the exemption.
Significant Changes to Existing Law The bill amends Section 203(m) of the Investment Advisers Act of 1940 by replacing the fixed $150,000,000 figure with $175,000,000 and adding a new paragraph for periodic inflation adjustments. This replaces a static threshold with one that automatically reflects economic changes.
Potential Impacts
- Government agencies: The SEC would implement and monitor the adjusted threshold and conduct inflation reviews every five years.
- Citizens and businesses: Investment advisers managing assets between $150 million and $175 million could avoid federal registration requirements, potentially reducing compliance costs. This may ease access to capital for small businesses that rely on private funds.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Investment advisers of private funds near the current threshold.
- Private fund investors and the small businesses or entities they finance.
- The SEC as the primary regulator.
- Congress, through its role in securities policy oversight.
Notable Legal, Constitutional, or Political Implications The bill makes a targeted amendment to existing securities law without raising constitutional concerns. It maintains the framework of the Investment Advisers Act while introducing an automatic adjustment process to reduce the need for future legislative updates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Velázquez, Nydia M. [D-NY-7]
Recent Actions
- 2025-09-08: Placed on the Union Calendar, Calendar No. 211.
- 2025-09-08: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-254.
- 2025-09-08: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-254.
- 2025-07-22: Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 2.
- 2025-07-22: Committee Consideration and Mark-up Session Held
- 2025-06-03: Referred to the House Committee on Financial Services.
- 2025-06-03: Introduced in House
- 2025-06-03: Introduced in House
Bill Versions
- Small Business Investor Capital Access Act — issued 2025-06-03 — PDF (2 pages)
- Small Business Investor Capital Access Act — issued 2025-09-08 — PDF (4 pages)