WASHINGTON, D.C. – U.S. Sen. John Kennedy (R-La.) today, announced the passage of his and U.S. Sen. Doug Jones’s (D-Ala.) legislation, S.2765 - RBIC Advisers Relief Act of 2018. This bill bolsters Rural Business Investment Companies (RBICs) by removing unnecessary compliance costs that distract from their important mission to provide capital to rural communities.
“Our rural businesses and entrepreneurs play an essential role in Louisiana’s economy. To ensure long-term stability for those job creators, we have to make sure they have access to capital,” said Sen. Kennedy. “That’s why the RBIC Advisers Relief Act of 2018 is so important. This bill reduces unnecessary compliance costs that hinder RBICs from accomplishing their mission.”
RBICs are licensed under the Rural Business Investment Program (RBIP), a venture capital program created as a joint initiative between the U.S. Department of Agriculture and the Small Business Administration. The RBIP was designed to promote economic development and job creation in rural communities by investing in companies involved in the production, processing and supply of food and agriculture-related products.
An unintended consequence of Dodd-Frank forced investment advisors to register with the Securities and Exchange Commission if they advised both an RBIC and a venture capital fund. Congress already fixed this burden for Small Business Investment Companies (SBICs) in 2015. This bill offers the same crucial relief to RBICs.