S. 2906 — Expanding American Entrepreneurship Act

This section revises the exemption from the definition of investment company under Section 3(c)(1) of the Investment Company Act of 1940—(i.e., exemption for privately offered issuers with limited beneficial owners)—by (1) increasing the maximum number of beneficial owners to 500 (from 250); and (2) increasing the asset threshold in subparagraph (C)(i) to $50 million (from $10 million). (Thus, larger private funds may qualify for the exemption and avoid registration under the 1940 Act.)