Today, the House Financial Services Committee unanimously passed U.S. Rep. Blaine Luetkemeyer’s (MO-03) legislation that would reduce duplicative regulatory burdens for advisers of Small Business Investment Companies (SBICs).

“I am pleased that my colleagues on the House Financial Services Committee once again recognized the importance of this legislation,” Luetkemeyer said. “We must continue to invest in our nation’s small businesses which mean reducing regulatory red tape for advisers so long-term investments can be made in businesses in our communities. My legislation contains a common-sense technical correction. Under current law, an adviser to Small Business Investment Companies, or SBICs, is exempt from SEC registration. An adviser to venture funds has the same exemption, but an adviser who advises only SBICs and venture funds is not exempt from SEC registration. That simply does not make sense. Since the passage of Dodd-Frank, small businesses have felt the effects the most and my legislation would relieve some of those burdens. I will continue to push to ensure this common-sense piece of legislation makes its way to the House floor in the near future.”

The SBIC Advisers Relief Act would accomplish several things: it allows SBIC advisers that jointly advise SBICs and venture funds to be exempt from registration; it excludes SBIC assets from the SEC registration threshold calculation; and it allows SBIC funds with less than $90 million in assets under management to be regulated solely by the U.S. Small Business Administration, which is the historical practice.

Luetkemeyer’s legislation unanimously passed in the House of Representatives in the 113^th Congress.