What does Preamble of HR 3383 do?

This Act amends the Investment Company Act of 1940 The amendment concerns closed-end companies' authority to invest in private funds

What does HELPING ANGELS LEAD OUR STARTUPS. of HR 3383 do?

This section, titled 'Helping Angels Lead Our Startups,' defines terms like 'angel investor group' and 'issuer' for the purposes of the section and related rule revisions. The Securities and Exchange Commission (SEC) is directed to revise Regulation D within six months of the Act's enactment. The revision aims to exempt presentations by issuers from the prohibition against general solicitation if certain conditions are met. These conditions relate to the event sponsor, location, advertising, fees, disclosures, and the information communicated about the securities offering. The sponsor of the event must not provide investment advice, actively participate in negotiations, or receive compensation for introductions. The event must not be held in a facility owned by a religious organization (with exceptions for accredited higher education institutions). The section clarifies that attendance at such an event does not, by itself, establish a pre-existing substantive relationship for Rule 506(b) purposes.

What does AMENDMENT FOR CROWDFUNDING CAPITAL ENHANCEMENT AND SMALL- of HR 3383 do?

This section amends Section 4A of the Securities Act of 1933. The maximum amount for crowdfunding offerings under Section 4A(b)(1)(D) is increased from $100,000 to $250,000. The Securities and Exchange Commission (SEC) has discretion to increase the crowdfunding amount up to $400,000 based on recommendations from the Office of the Advocate for Small Business Capital Formation and the Office of the Investor Advocate. Technical corrections are made to references to section 4 within the Securities Act of 1933, replacing instances of 'section 4(6)' with 'section 4(a)(6)' and similar adjustments. Similar corrections are made to references to section 4 within sections 16(f)(3) and 18 of the Securities Act of 1933.

What does SMALL BUSINESS INVESTOR CAPITAL ACCESS. of HR 3383 do?

This section amends the Investment Advisers Act of 1940 The amendment increases the dollar amount in Section 203(m) from $150,000,000 to $175,000,000 An inflation adjustment is added to update the dollar amount every 5 years

What does ADVOCATING FOR SMALL BUSINESS. of HR 3383 do?

This section amends Section 4 of the Securities Exchange Act of 1934. It requires the Securities and Exchange Commission (SEC) to establish an Office of Small Business within each of its divisions: the Division of Corporation Finance, the Division of Investment Management, and the Division of Trading and Markets. These Offices will coordinate with the Office of the Advocate for Small Business Capital Formation on rules and policy priorities related to capital formation. The subsection explicitly prohibits the authorization of expenditures for additional full-time equivalent employees.

What does SMALL ENTITY UPDATE. of HR 3383 do?

This section defines terms related to small entities for the Securities and Exchange Commission. The Commission must conduct studies on the definition of 'small entity' and submit reports to Congress. The Commission may propose rule revisions instead of conducting the studies. The Commission must revise its rules based on the study results and adjust dollar figures for inflation.

What does IMPROVING ACCESS TO SMALL BUSINESS INFORMATION. of HR 3383 do?

This section amends Section 4(i) of the Securities Exchange Act of 1934. It clarifies that actions taken by the Advocate for Small Business Capital Formation are generally not considered 'collection of information' under the Paperwork Reduction Act. Certain requirements of the Paperwork Reduction Act (specifically sections 3506 and 3507 of Title 44) still apply to the Advocate's actions. The Securities and Exchange Commission (SEC) is not required to submit collections of information from the Advocate to the Office of Management and Budget or display control numbers on those collections.

What does IMPROVING CAPITAL ALLOCATION FOR NEWCOMERS. of HR 3383 do?

This section amends the Investment Company Act of 1940 to increase the threshold for qualifying venture capital funds. The amendment increases the number of persons from 250 to 500 and the dollar figure from $10,000,000 to $50,000,000. A study will be conducted 5 years after enactment to assess the effect of these amendments on businesses and startup entities. The study will examine changes in geographic distribution of capital, socio-economic characteristics of founders, and other factors. The Commission may issue rules to adjust the thresholds based on the study's findings.

What does DEVELOPING AND EMPOWERING OUR ASPIRING LEADERS. of HR 3383 do?

This section directs the Securities and Exchange Commission (SEC) to revise the definition of a qualifying investment. The revision includes equity securities issued by a qualifying portfolio company, whether acquired directly or in a secondary acquisition. Investments in another venture capital fund are also designated as qualifying investments. The section requires that a private fund, to qualify as a venture capital fund, must hold no more than 49 percent of its aggregate capital in other venture capital funds or qualifying investments acquired in a secondary acquisition. This requirement applies immediately after the acquisition of any asset.

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Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025 — HR. 3383

Q: What does EXPANDING ACCESS TO CAPITAL FOR RURAL JOB CREATORS. of HR 3383 do?

This section amends the Securities Exchange Act of 1934 It inserts 'rural-area small businesses' into two paragraphs The amendments aim to expand access to capital

Last updated: 12/15/2025 · Introduced: 5/14/2025

Author: Ann Wagner (R-MO)

TL;DR (AI)

The bill expands access to capital for rural-area small businesses and emerging growth companies by amending the Securities Exchange Act of 1934 and the Securities Act of 1933.
It increases the maximum amount for crowdfunding offerings from $100,000 to $250,000, with the possibility of the SEC increasing it up to $400,000.
The bill revises the definition of accredited investor to include individual net worth, income, and professional experience requirements, and establishes an examination for certified individuals.
It allows closed-end companies to invest in securities issued by private funds and prohibits the SEC and national securities exchanges from restricting such investments.
The bill requires the SEC to propose rules for electronic delivery of regulatory documents to investors and establishes a Senior Investor Taskforce to identify challenges faced by senior investors.

119th Congresspassed houseS. 3671(In Committee)Official page

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Other Sections

Includes provisions on preamble, expanding access to capital for rural job creators., and 8 more.

10 sections

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TITLE II

-INCREASING OPPORTUNITIES FOR INVESTORS

6 sections

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TITLE III

-STRENGTHENING PUBLIC MARKETS

8 sections

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