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(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Creating Financial Prosperity for Businesses and Investors Act
TITLE I--SMALL BUSINESS CAPITAL FORMATION ENHANCEMENT
(Sec. 101) This bill amends the Small Business Investment Incentive Act of 1980 to require the Securities and Exchange Commission (SEC) to issue a public statement, and disclose any actions it intends to take, each time its annual government-business forum submits findings or recommendations regarding the current status of problems and programs relating to small business capital formation.
TITLE II--SEC SMALL BUSINESS ADVOCATE
(Sec. 201) This title amends the Securities Exchange Act of 1934 to establish within the SEC an Office of the Advocate for Small Business Capital Formation and a Small Business Capital Formation Advisory Committee.
The Advocate for Small Business Capital Formation shall:
assist small businesses and small business investors in resolving significant problems they may have with the SEC or with self-regulatory organizations;
The Small Business Capital Formation Advisory Committee shall provide the SEC with advice on SEC rules, regulations, and policies regarding its mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, as they relate to:
House Dec 5, 2016
Creating Financial Prosperity for Businesses and Investors Act
Passed · Two-thirds required
391 Yea 2 Nay 40 not voting
Crossed both parties 2 of 393 voting members broke with their own party: 2 Democrats.
DemocratsRepublicansFilled: YeaRing: NayGrey: not voting or present
433 members on this roll call, from the official House record. Party majorities need at least five voting members, so an independent never counts as breaking with a party.
Signing on is not a vote: a member can cosponsor H.R. 6427 and vote against it. 10 signed when it was filed.
capital raising by emerging, privately held small businesses and publicly traded companies with less than $250 million in public market capitalization through securities offerings;
The SEC shall assess the committee's recommendations and disclose any action it intends to take with respect to such recommendations.
TITLE III--SUPPORTING AMERICA'S INNOVATORS
(Sec. 301) This title amends the Investment Company Act of 1940 to increase from 100 to 250 the limit on the number of people who may own securities in certain venture capital funds before the issuer is required to register as an investment company.
Under current law, an issuer is exempt from requirements to register as an investment company if its outstanding securities (other than short-term paper) are beneficially owned by not more than 100 persons and it is not making a public offering. The bill revises this exemption to allow a special category of venture capital funds (with no more than $10 million in invested capital, adjusted annually for inflation) to remain exempt from these registration requirements until they have more than 250 persons who own their securities.
TITLE IV--FIX CROWDFUNDING
(Sec. 401) This title amends the Securities Act of 1933 and the Investment Company Act of 1940 to allow crowdfunding issuers to sell shares through a special purpose entity known as a crowdfunding vehicle, and exempt them from registering as investment companies, if their crowdfunding vehicle is a company that:
has purposes limited to acquiring, holding, and disposing securities issued by a single company in one or more transactions and made pursuant to crowdfunding exemption transaction requirements;
(Crowdfunding is a method of capital formation in which groups of people pool money, typically composed of small individual contributions, and often via Internet platforms, either to invest in a company or to support an effort by others to accomplish a specific goal.)
(Sec. 402) The bill amends the Securities Exchange Act of 1934 to revise the conditions upon which the SEC shall exempt securities issued in crowdfunding transactions from SEC registration requirements.
Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer: (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but removes and replaces the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has: (1) a public float of less than $75 million, and (2) annual revenues of less than $50 million.
TITLE V--FAIR INVESTMENT OPPORTUNITIES FOR PROFESSIONAL EXPERTS
(Sec. 501) This title amends the Securities Act of 1933 to qualify as accredited investors four categories of natural persons:
whose individual net worth, or joint net worth with his or her spouse, exceeds $1 million (adjusted every five years for inflation);
For purposes of the first category of net worth qualifications, a person's net worth shall exclude:
the person's primary residence; and
Indebtedness secured by the person's primary residence in excess of the residence's estimated fair market value at the time of the sale of securities, however, shall be included in net worth as a liability.
TITLE VI--U.S. TERRITORIES INVESTOR PROTECTION
(Sec. 601) This title amends the Investment Company Act of 1940 to repeal the exemption from its coverage of investment companies created under the laws of Puerto Rico, the Virgin Islands, or any other U.S. possession.
Written by the nonpartisan Congressional Research Service, describing H.R. 6427 as passed House without amendment on Dec 5, 2016. It is not the text of the measure; a later amendment may have changed what it does.
Organizations that named H.R. 6427 in a lobbying disclosure. Only those that cited the bill by number appear, so this is a floor, not a full list.
5 disclosures name this measure. Retrieved from LDA.gov on 2026-10-05. Senate Office of Public Records cannot vouch for the data or analyses derived from these data after the data have been retrieved from LDA.gov.