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house Bill H.R. 432

Giving Small Business Investment Companies a Break from Reporting Regulations

Argument in favor

This bill would clarify the role SBICs play, while giving them a much-needed break from regulatory requirements that can keep them from helping small businesses grow and boost the economy.

Chad's Opinion
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09/25/2015
Small business increase competition which drive prices down
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Curmudgeon's Opinion
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07/18/2015
Regulations discourage entrepreneurship or expansion. Confusing and perhaps conflicting regulations are worse still. It is hard to determine what good will result from funding a study intended to streamline anything, but this goal may be one worth pursuing.
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John's Opinion
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07/13/2015
Reduce red tape and regulations wherever possible. BUT NO MORE BAIL OUTS!!
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Argument opposed

Why should SBICs get an exemption from the regulations that everyone else in the industry has to follow? SBICs should not be above federal registrations or state regulations.

Steven's Opinion
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03/18/2016
So as long as you make money we don't care how you do it. This is the line of thinking that lets big oil pollute, big tobacco sell cancer sticks to children & big guns sell to spree shooters.
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Evercraft's Opinion
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07/15/2015
Why would we pave the way for another market crash? Weren't these specific regulations invented because lenders were breaking the rules?
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Bfallen07's Opinion
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07/19/2015
Am sick of the money given to people who do not deserve
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What is House Bill H.R. 432?

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.

Impact

Small businesses, venture capital funds, private investment funds, SBIC advisers, state regulators, and the SEC.

Cost of House Bill H.R. 432

A CBO cost estimate is unavailable.

More Information

In-Depth: According to the Small Business Investor Alliance, SBICs have invested nearly $60 billion in small American companies since they were created in 1958. During the 2010 fiscal year alone they provided over $2 billion to more than 1,300 small businesses.

This bill was passed by the House Financial Services Committee by a vote of 53 to 0 before it proceeded to the House floor.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user vandalog)

AKA

SBIC Advisers Relief Act of 2015

Official Title

To amend the Investment Advisers Act of 1940 to prevent duplicative regulation of advisers of small business investment companies.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed July 14th, 2015
    Passed by Voice Vote
      house Committees
      Committee on Financial Services
      Investor Protection, Entrepreneurship, and Capital Markets
    IntroducedJanuary 21st, 2015

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