Access to Small Business Investor Capital Act
H.R. 2225, the Access to Small Business Investor Capital Act, would change how registered investment companies (mutual funds and similar funds) calculate Acquired Fund Fees and Expenses on their registration statements. Specifically, it would allow a fund to omit from that calculation certain indirect fees and expenses that arise from investing in shares of one or more Acquired Funds that are business development companies (BDCs). In practice, this could reduce the amount shown in the Acquired Fund Fees and Expenses line of the fund’s fee table when the fund licenses or invests in BDC shares. The bill is intended to facilitate investment into BDCs (which invest in small businesses) by broadening the apparent cost efficiency of funds that hold these assets. The bill has passed the House and is pending in the Senate.
Key Points
- 1Core change: A registered investment company may omit from the Acquired Fund Fees and Expenses calculation those indirect fees and expenses incurred as a result of investing in shares of Acquired Funds that are business development companies.
- 2Definitions: The bill relies on and clarifies terms such as Acquired Fund, Acquired Fund Fees and Expenses (the sub-caption in the Fee Table Disclosure), Business Development Company (BDC), Fee Table Disclosure, and Forms N-1A, N-2, and N-3.
- 3Scope of application: The omission would apply to investment company registration statements filed under Section 8(b) of the Investment Company Act (i.e., standard registration statements for registered investment companies).
- 4Relationship to SEC disclosures: The change centers on the Fee Table Disclosure in Forms N-1A, N-2, or N-3 (as applicable) and would modify what is considered part of Acquired Fund Fees and Expenses.
- 5Legislative status: Introduced in the 119th Congress; passed the House (June 23, 2025) and referred to the Senate (June 24, 2025). Not yet enacted into law and may require SEC rule/regulatory adjustments to implement.