Access to Small Business Investor Capital Act

S. 1808 would modify how registered investment companies report fees when they invest in Business Development Companies (BDCs). Currently, an SEC rule requires funds to disclose both a BDC's management fees and its "acquired fund fees and expenses," which results in double-counting expenses since BDCs already report their operating costs. This makes BDC investments appear more expensive to investors than they actually are, discouraging funds from investing in them.

The bill would allow investment companies to omit the duplicative "acquired fund fees and expenses" from their fee calculations while still disclosing BDC management fees and other expenses. Supporters argue this change would give investors a more accurate picture of actual costs and make BDCs more competitive for investment capital. Since BDCs are required to invest at least 70 percent of their assets in small and medium-sized businesses, the bill aims to increase capital available for small business growth and job creation.

The bill is currently under consideration by the Senate Committee on Banking, Housing, and Urban Affairs. It has bipartisan support and has not yet been voted on by the full Senate.