NEWS | House Set to Pass the Bipartisan INVEST Act, Reshape Capital-Formation Requirements for Small Business

Aimed at unlocking capital for entrepreneurs and emerging companies across the country, the INVEST Act is a bipartisan effort from the House with big potential to reshape how small business can go from Main to Wall to Every Street.

DEC. 09, 2025 |. This week, a group of bipartisan lawmakers on the House Financial Services Committee will reportedly pursue passage of a package of bills focused on easing processes for small and mid-sized businesses to take their ventures public.

Known as the INVEST Act (H.R. 3383), 16 sections of the bill have already passed the full House, with Congressmen working now to tie the pieces together and pass its 22-section capital formation framework, supercharging a path to productive negotiations with the Senate, if things go according to plan.

Changes the bill would implement include: a proposal for an exam to become an accredited investor, changing the per se variable of net worth as verified by the Securities and Exchange Commission (SEC), as well as policy intended to increase access to funding for Midwestern, Southern, and rural entrepreneurs and small-business owners.

Cosponsored by Reps. Ann Wagner (R-Mo.) and Gregory Meeks (D-N.Y.), the INVEST Act would also ensure workers with 403(b) retirement plans, such as teachers and nonprofit workers, can access investment options closer aligned with those of 401(k) holders.

____

What Is the INVEST Act?

• H.R. 3383 was introduced in May 2025 and reported out of the House Financial Services Committee this summer.

• The measure consolidates roughly 20 bipartisan bills addressing capital-market access, regulatory modernization, and retirement-plan reform, including for 403(b) plans for educators, nonprofit workers, and other charity-sector employees.

• Provisions include easing restrictions on closed-end and private-fund investments, creating small-business “offices” within enforcement agencies, and simplifying the process for small and mid-sized enterprises to raise capital or eventually go public.

Different from the JOBS Act, the INVEST Act aims to open public and private capital markets to smaller companies with the biggest potential to suffer the weight of regulatory burdens.

What Does the INVEST ACT Do for Small-Business Owners?

• By lowering barriers on private funds and closed-end funds investing in small companies, relaxing certain listing requirements and creating a pathway for easier access to capital, the INVEST Act is meant to help more small businesses outside tap public and private funding sources, beyond traditional tech hubs.

• The INVEST Act also would expand capital availability beyond urban centers, benefitting entrepreneurs in the Midwest, South, and rural America who often have fewer financing options.

• For organizations relying on 403(b) plans, the INVEST Act would support increased access to more diversified investment options, theoretically better aligning retirement benefits for teachers, nonprofit staff, and similar workers with those of 401(k) holders.

• Modernizing disclosure rules and removing outdated restrictions, smaller firms could find it less burdensome to seek investment or consider going public under the INVEST Act, potentially shortening the time, lowering the cost, and reducing the compliance barrier that too often can hamper small-business growth.

For small-business owners with dreams to take their enterprises public, this could mean more viable paths to scale, stronger access to growth capital, and more flexibility in structuring ownership or raising funds, all without having to jump through the hoops that historically favored larger incumbents.

What NSBA is Tracking & What You Can Do

H.R. 3383 still faces further floor votes, possible amendments, and Senate consideration before becoming law.

Some provisions, especially those affecting public offerings and fund-investment rules, may carry compliance or market-risk tradeoffs. Smaller firms should remain alert to how regulatory changes actually roll out.

As with any regulatory reform, the benefits may unfold over time. Small businesses looking to raise capital should follow NSBA to stay ahead of all of the latest updates on the INVEST Act.

Ultimately, small businesses thrive with access to fair, flexible, and modern capital markets. They don't when outdated regulations, compliance burdens, or regional disparities limit their growth.

If passed, the INVEST Act presents a new opportunity to support small businesses, rural entrepreneurs, and nonprofits alike.

NSBA commends Congress' bipartisan effort to remove barriers, broaden access, and modernize financial-market rules for small businesses. Common sense policy and cooperation across Congress and the Administration to prioritize support for small business remains the best means of ensuring the nation's most important economic community can grow, innovate, and compete on a level playing field.

If the INVEST Act is something you support or that would benefit your small business, NSBA encourages you to reach out to your Members of Congress - always an option and accessible thanks to our online Action Alert center, where you can amplify your advocacy for small business directly with decision makers on Capitol Hill.

Follow NSBA as we continue tracking progress of the INVEST Act this week and this Congress.