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HR 3673119th CongressIntroduced
Small Business Investor Capital Access Act
Introduced: Jun 3, 2025
Sponsor: Rep. Barr, Andy [R-KY-6] (R-Kentucky)
Financial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Small Business Investor Capital Access Act would modify the Investment Advisers Act of 1940 to raise and stabilize the exemption threshold for investment advisers of private funds. Specifically, it increases the registration-exemption threshold from $150 million to $175 million in assets under management (AUM) and introduces a new inflation-adjustment mechanism. Every five years, the threshold would be adjusted for changes in the Consumer Price Index for All Urban Consumers (CPI-U) and rounded to the nearest $1 million. The overall aim is to reduce regulatory burden on mid-sized private-fund advisers and ensure the threshold keeps pace with inflation over time.
Key Points
- 1Increases the exemption threshold for certain investment advisers of private funds from $150,000,000 to $175,000,000 in AUM.
- 2Adds an inflation adjustment: every five years, adjust the threshold using the CPI-U and round to the nearest $1,000,000.
- 3The inflation adjustment is automatic, ensuring the threshold remains aligned with price level changes without new legislation.
- 4The exemption applies to investment advisers of private funds; advisers with AUM below the threshold remain exempt from registration under the Investment Advisers Act, while those above would be subject to registration.
- 5Legislative status: Introduced by Reps. Barr and Velázquez (June 3, 2025); reported with an amendment and placed on the House calendar for consideration (Sept. 8, 2025).
Impact Areas
Primary group/area affected: Private fund investment advisers whose assets under management are under the updated threshold; these advisers would face less regulatory burden (no required SEC registration) than under current law.Secondary group/area affected: Private funds and their investors, who may experience changes in the regulatory landscape and compliance expectations; the SEC and other federal-regulatory staff involved in registration and oversight of advisers.Additional impacts: The automatic, periodic inflation adjustment reduces the need for future standalone changes to the threshold but introduces upward drift over time, potentially bringing more advisers into the exempt category if inflation pushes the threshold upward. The change is framed to support “small business” capital access by easing regulatory costs for mid-sized private-fund advisers.
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