SBIA expresses support for Small Business Investor Capital Access Act

New bill would spur new fund formation to increase small business access to capital

WASHINGTON, D.C. (April 14, 2023) – The Small Business Investor Alliance (SBIA), the premiere association representing lower middle market private equity and its investors, expressed support for legislation introduced by U.S. Rep. Andy Barr (R-KY) that will modernize the exemption for private fund advisors having to register with the Securities and Exchange Commission (SEC). The “Small Business Investor Capital Access Act” (H.R. 2578) would index the current assets under management (AUM) cap to inflation, going back to enactment over 12 years ago, and adjusting annually thereafter.

“This common sense legislation will right-size the investment advisor registration threshold today and in the future, ensuring small businesses have access to the capital they need to drive our economy forward,” said SBIA President Brett Palmer.

In 2010, Congress replaced the longstanding private fund exemption from SEC registration requirements with a set of narrower exemption criteria. Under the 2010 criteria, advisers to private funds with less than $150 million in assets under management (AUM) are exempt from full registration requirements. However, this threshold was too low when it was written and has never been raised nor indexed for inflation. It is generally recognized that reporting requirements place a disproportionate burden upon smaller funds, which manage less than 0.5% of AUM.

SBIA Letter of Support >

# # #

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 60 years. For more information, visit or call (202) 628-5055.

Related News