Small Business Investor Capital Access Act

H.R. 3673 would modify federal regulations governing investment advisers who manage private funds like hedge funds and private equity funds. Specifically, the bill would increase the dollar threshold that determines whether these advisers must register with the Securities and Exchange Commission (SEC), reflecting inflation that has occurred since 2010 when the current threshold was set. The current threshold is $150 million in assets under management; if enacted, this amount would be adjusted upward based on inflation measured by the Consumer Price Index, with automatic annual adjustments going forward.

The bill is designed to reduce regulatory burdens on smaller investment advisory firms. By raising the registration threshold, smaller firms could continue operating without full SEC registration for longer, potentially saving them compliance costs and allowing them more flexibility to grow. The changes would primarily affect investment advisory firms managing private funds and could indirectly benefit small businesses seeking investment capital, as these firms would have fewer regulatory obstacles to managing and raising funds. The Congressional Budget Office estimates the cost to implement the bill would be negligible, with any private-sector costs remaining well below federal thresholds for unfunded mandates.