The House of Representatives 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 very pleased that my legislation was brought to the House floor less than two months after my colleagues in the House Financial Services Committee supported it. There are 28 million small businesses in America, and bills like H.R. 432 reduce regulatory burdens so that long term investments can be made in our small businesses and communities. It is my hope my colleagues in the Senate will see the importance of this legislation and bring it to the floor without delay.”

Luetkemeyer’s legislation, H.R. 432, the SBIC Advisers Relief Act, is based upon a technical correction. Under current law, an adviser to 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. H.R. 432 fixes that issue.

The SBIC Advisers Relief Act would allow SBIC advisers that jointly advise SBICs and venture funds to be exempt from registration; would exclude SBIC assets from the SEC registration threshold calculation; and would allow SBIC funds with less than $90 million in assets under management to be regulated solely by the United States Small Business Administration.

On May 20, 2015, the House Financial Services Committee passed this legislation by a vote of 53-0. Luetkemeyer’s legislation unanimously passed in the House of Representatives in the 113^th Congress.