Access to Small Business Investor Capital Act
Access to Small Business Investor Capital Act
Plain Language Summary
# Access to Small Business Investor Capital Act Summary **What the bill does:** This bill makes a technical change to how investment companies calculate and report their fees to investors. Specifically, it allows registered investment companies to exclude certain indirect fees they pay when investing in business development companies (which lend to or invest in small businesses) from their total fee calculations. Currently, these indirect fees must be included in the "acquired fund fees and expenses" line item that appears on investor fund statements. **Who it affects:** The primary beneficiaries would be investment companies and their investors.
Small businesses that receive capital from business development companies could indirectly benefit if lower reported fees make these investment vehicles more attractive to investors. **Current status:** The bill passed the House of Representatives. It has not yet been voted on by the Senate, so it has not become law. The change is relatively narrow and technical in nature, focused on fee disclosure rules rather than substantive changes to small business lending or investment.
CRS Official Summary
Access to Small Business Investor Capital Act This bill allows a registered investment company to exclude from the calculation of acquired fund fees and expenses those incurred indirectly from investment in a business development company. Acquired fund fees and expenses is a required line item on a fund's fee schedule that provides the operating expenses of the fund.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.