SBE Council Letter to Speaker Johnson and Leader Jeffries in Support of “INVEST Act”

By SBE Council at 8 December, 2025, 11:08 am

The Honorable Mike Johnson
Speaker
U.S. House of Representatives
Washington, DC 20515

The Honorable Hakeem Jeffries
Democratic Leader
U.S. House of Representatives
Washington, DC 20515

Re: INVEST Act Promotes Capital Availability and Economic Opportunity for Small Businesses

Dear Speaker Johnson and Leader Jeffries:

On behalf of the Small Business and Entrepreneurship Council (SBE Council), I write in strong support of H.R. 3383, the Incentivizing New Ventures and Economic Strength Through Capital Formation (INVEST) Act. The legislation offers an important and needed set of reforms to enhance capital access for America's startups and small businesses. Entrepreneurs require a regulatory framework that encourages capital formation, investment, and one that fosters the long-term health of our capital markets and economy. The INVEST Act advances these goals in meaningful ways.

The INVEST Act is timely, as SBE Council's October 2025 Small Business Check Up Survey found that 51% of small business owners reported that limited access to capital is restricting their ability to invest, grow, effectively compete, and operate at their ideal capacity. The INVEST Act advances practical solutions and reforms - measures long supported by SBE Council - that address their capital needs.

The INVEST Act increases the crowdfunding threshold requiring a costly accountant review. The increase - from $100,000 to $250,000, with discretion up to $400,000 - reduces a significant burden for startups seeking modest early financing. The update will allow more small businesses to pursue regulated crowdfunding by making the option more efficient and less costly.

The INVEST Act sensibly and responsibly modernizes accredited investor eligibility, which means entrepreneurs will have a wider pool of capital to tap into beyond wealthy investors.

The INVEST Act provides clarity and reassurance for startups during demo days and related pitch events. Specifically, that they are in compliance with rules when they participate in these important events that provide exposure and recognition for their startups.

The INVEST Act enhances the capital channels that supply financing to small businesses. Raising the exemption threshold for smaller investment advisers helps preserve the regional and specialized investors who often provide early support to entrepreneurs.

The INVEST Act broadens the flow of professionally managed capital into private markets and improves the Emerging Growth Company framework, making it easier for growing businesses to access financing as they scale. The bill also expands the pool of investors who can participate in private offerings, which increases the number of potential backers available to entrepreneurs seeking early financing. Additionally, the legislation permits the submission of confidential draft registration statements and "testing the waters" with potential investors. This will allow companies to receive feedback from investors, and help to determine interest before committing to a public filing

The INVEST Act aims to improve the regulatory environment by establishing Offices of Small Business within key divisions at the SEC, updating the definition of small entity, and requiring future rules to account for small business impacts, which will ensure that regulatory decisions better reflect the potential impact on small firms. Moreover, the bill directs resources to study the challenges and barriers for small businesses that seek to go public.

Taken together, the INVEST Act represents a balanced and thoughtful legislative package that modernizes outdated rules, reduces unnecessary barriers, and bolsters capital access for entrepreneurs and small businesses.

SBE Council appreciates your bipartisan leadership in advancing legislation that embodies solutions that will help entrepreneurs access capital and boost economic opportunity across sectors. Please let SBE Council know how can be helpful in ensuring this important legislation is signed into law.

Sincerely,

Karen Kerrigan, President & CEO

cc: The Honorable French Hill

The Honorable Ann Wagner

The Honorable Gregory Meeks

The Honorable Josh Gottheimer