On March 11, 2014, Rep. Blaine Luetkemeyer (R-MO) introduced the SBIC Advisers Relief Act of 2014 (the “SBIC Relief Act”). Under current regulations promulgated in conjunction with the Dodd-Frank Act, advisers that advise solely SBIC Funds or advise solely venture capital funds need not register with the Securities and Exchange Commission as investment advisers. However, these exemptions cannot currently be combined.

The SBIC Relief Act amends the Investment Advisers Act of 1940 to reduce regulatory costs and remove duplicative regulation of SBIC advisers. Specifically, the SBIC Relief Act would (1) preempt state registration requirements for advisers advising solely SBIC Funds; (2) permit venture capital advisers to continue as “exempt reporting advisers” if they advise an SBIC Fund as well; and (3) exclude assets of an SBIC Fund in the calculation of assets under management for advisers advising both private funds and SBIC Funds.