U.S. Congressman Andy Barr and Congresswoman Nydia Velázquez have reintroduced the Small Business Investor Capital Access Act, a bipartisan initiative aimed at increasing the threshold for private fund advisers to register with the U.S. Securities and Exchange Commission (SEC). The current exemption, set by the 2010 Dodd-Frank law, stands at $150 million.
The proposal is designed to allow more private fund managers to invest in small businesses without being burdened by complex SEC compliance requirements. This move comes at a crucial time as a Federal Reserve survey from May 2025 indicates tightened bank lending standards. Private investment is seen as a potential solution to this gap. Data from the American Investment Council shows that about 85% of businesses supported by private equity are small businesses, employing approximately 1.4 million Americans.
“One of my missions in Congress is to expand capital for small businesses, farmers, and other businesses throughout Kentucky,” stated Congressman Barr, who serves as 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.”
Congresswoman Velázquez added her support: “Access to capital remains one of the biggest challenges facing small businesses, especially in communities that have long been overlooked by traditional lenders.” As Ranking Member of the House Small Business Committee, she emphasized her commitment to finding bipartisan solutions that aid entrepreneurs nationwide.
Brett Palmer, President of the Small Business Investor Alliance, commented on the outdated nature of current regulations: “The original $150 million threshold was set too low and has never been adjusted to reflect economic growth or inflation.” He praised Representatives Barr and Velázquez for their efforts to modernize these regulations.
