WASHINGTON--(BUSINESS WIRE)--The Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, gains a second victory in two days in the U.S. House of Representatives with passage of the Small Business Investment Company (SBIC) Advisers Relief Act. H.R. 432 is one of the key provisions of the SBIA’s Capital Formation Agenda.
“Two wins in two days is a significant milestone in our ongoing efforts to enhance the business environment for small business investors,” said Brett Palmer, President of the Small Business Investor Alliance. “The SBIC Advisers Relief Act will provide significant relief from the redundant regulatory and compliance requirements that have consumed excessive time and financial resources of small business investors. Eliminating duplicative burdens will enable investors to focus more on facilitating small business growth.”
H.R. 432 will correct language in Dodd-Frank to remove duplicative compliance burdens while maintaining investor protections. Dodd-Frank was written with the clear intent to avoid double regulation of SBICs. However, the way it has been applied has caused unintended double regulation. This bill would remove regulated SBIC capital from the calculation used to trigger Registered Investment Adviser requirements, remove double regulation by both state and federal regulators, and remove the accidental regulatory burdens imposed by having two types of exempt funds – Venture and SBIC. This bill is a bipartisan technical correction that maintains investor protections while reducing regulatory burdens on small business investors.
Introduced in the House on January 21 by Representative Blaine Luetkemeyer (R-MO) and Representative Carolyn Maloney (D-NY), it was the subject of a hearing on April 29 before the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises. The House Financial Services Committee passed the bill on May 21.
About the Small Business Investor Alliance (SBIA)
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.