H.R. 4130 · Where this bill is now
Waiting for a House vote
Approved by committee Feb 25, 2026; no House vote yet
What this bill does
In plain words · AI-written from the official summaryEases SEC registration rules for businesses
Right now, companies that sell securities—basically shares or investment products—have to register with the SEC and file regular reports once they have too many investors. This bill changes that by saying certain types of investors, called qualified institutional buyers and institutional accredited investors, won't count toward that investor limit. So companies can bring in these bigger, more established investors without triggering those registration requirements.
How it affects you
This mainly affects small businesses and startups looking to raise money by selling securities. They'll have more flexibility to bring in large institutional investors without getting caught in SEC registration rules, which can be costly and time-consuming. For regular people investing in these securities, the official summary doesn't explain what safeguards or changes might affect you directly.
Read the official summary (Reported to House, Feb 25, 2026)
Small Business Relief Act
This bill allows issuers of securities to have institutional investors and buyers in a class of securities without needing to comply with certain Securities and Exchange Commission (SEC) registration requirements.
Currently, issuers of securities must register with and periodically report to the SEC when, among other requirements, the number of investors in a class of securities exceeds a specific cap. Under the bill, qualified institutional buyers and institutional accredited investors do not count towards this cap.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 4130
A BILL
Small Business Relief Act
Sponsor: Rep. Andrew R. Garbarino (R-NY-2) · Introduced Jun 25, 2025 · Finance and Financial Sector · 2 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 25, 2026: “Placed on the Union Calendar, Calendar No. 450.”