Bill · H.R. 4431· House(119-HR-4431)
Improving Capital Allocation for Newcomers Act of 2025
- Introduced
- 7/16/2025
- Last activity
- 12/2/2025 — Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- William Timmons
- Cosponsors
- - 0 - 1
- Introduced
- Passed House
- In Senate committee
What this bill would do
The Improving Capital Allocation for Newcomers Act of 2025 seeks to amend the Investment Company Act of 1940. It changes the definition of qualifying venture capital funds by increasing the person threshold from 250 to 500 and raising a specific dollar amount from $10,000,000 to $50,000,000. The Act also mandates a study to be conducted five years after enactment regarding the effects of these changes on businesses and startups. This study will look at factors like geographic distribution, socio-economic characteristics, and veteran status of founders. Based on the study's findings, the Commission may issue specific rules to further adjust the person threshold or the dollar amount.
Yes· 3 of 5
Does this make it easier to run a small business?+5
The act aims to improve capital allocation for startups and newer business entities through adjusted fund definitions.
Would business owners be better off under this?+4
The changes to venture capital fund definitions are intended to benefit startup entities and their owners.
Is this likely to create jobs?+3
By expanding the definition of qualifying venture capital funds, the act may facilitate easier capital access for startups, potentially driving job growth.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Changes to Qualifying Venture Capital Funds: Under Section 2, the Act increases the person threshold to 500 and raises the dollar figure to $50,000,000. This modifies the definition of qualifying venture capital funds.
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Required Study on Business Effects: According to Section 3(a)(1), a study will be conducted to examine the effects of the amendments on businesses and startup entities. This study specifically looks at trends involving:
- The geographic distribution of capital to portfolio companies;
- The socio-economic characteristics of founders or controlling persons;
- The veteran status of founders or controlling persons;
- The industry sector, size, and stage of development.
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Public Feedback Opportunity: Section 3(c) requires the Commission to solicit feedback from the public for a 180-day period after the study's report is issued, allowing for public input on the findings.
Potential Negative Impacts for People
- No specific negative impacts are explicitly detailed in the text provided.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+5Improves Economic Growth+3Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+4Good For Veterans+3
- 12/2/2025
- Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 12/1/2025
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4950-4951)
- On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4950-4951)
- DEBATE - The House proceeded with forty minutes of debate on H.R. 4431.
- Considered under suspension of the rules. (consideration: CR H4950-4952)
- Mr. Davidson moved to suspend the rules and pass the bill, as amended.
- 9/8/2025
- Reported (Amended) by the Committee on Financial Services. H. Rept. 119-248.
- Placed on the Union Calendar, Calendar No. 205.
- 7/22/2025
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 2.
- 7/21/2025
- 1 Cosponsor added.
- 7/16/2025
- Referred to the House Committee on Financial Services.
- Introduced in House
Brittany PettersenDemocrat · Colorado