This bill would amend the Investment Advisers Act of 1940 to exempt advisers of small business investment companies (SBICs) from:
Securities and Exchange Commission (SEC) registration requirements related to giving venture capital funds with investment advice.
SEC registration and reporting requirements on assets under the management of private funds.
An SBIC is a privately-owned investment company that receives a license from the Small Business Administration (SBA) to finance small businesses through debt (typically loans) and equity (stock). Most of their investments are in the range of $100,000 to $250,000, and they are able to borrow money from the federal government in order supplement funds from private investors.
The bill would also exempt SBICs from any registration, licensing, or qualification requirements imposed by states on investment advisers.