This bill would make changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act to enhance the ability of small businesses to get money through financial markets.
It modifies rules to allow non-financial businesses to enter into derivative swaps without being subjected to the regulatory requirements that apply to financial firms. These derivative swaps are done to mitigate the risks faced by the businesses in the course of their operations.
The Volcker Rule — which restricted relationships between banks and hedge funds or private equity firms — would be prohibited from being construed as requiring companies to divest their of collateralized loan obligations (CLOs).
Small Business Investment Companies (SBICs) would be exempted from registering with the U.S. Securities and Exchange Commission that otherwise would apply by providing investment advice relating to venture capital funds. This would also apply to SEC reporting requirements regarding assets under management of private funds.