Small Business Relief Act

House Votes

This bill changes how companies count their shareholders when deciding if they must register with the SEC. It says companies should not count certain large, professional investors when adding up the number of “holders” that triggers mandatory registration. It also blocks the SEC from undoing this specific change using its general waiver powers. The short title is the Small Business Relief Act.

What this means in plain terms: some private companies could stay private longer, even if they take money from big, professional investors, because those investors wouldn’t push them over the cutoff that forces public reporting.

• Who is affected: Private companies and “qualified institutional buyers” and “institutional accredited investors” (large, professional investors) in those companies.
• What changes: These investors would no longer be counted toward the shareholder limit that triggers mandatory SEC registration; the SEC cannot use its general exemptive authority to change this part.
• When: The text provided does not state an effective date; it would take effect upon enactment unless otherwise specified.