KERRIGAN ON CAPITAL IDEAS: Trump’s Executive Order on 401(k) Alternative Assets – A Game-Changer for Small Businesses and Innovation

By SBE Council at 15 September, 2025, 8:44 pm

In a blog post feature on Crowdfund Insider and Capitol Ideas podcast, SBE Council President & CEO Karen Kerrigan explains the importance of President Trump’s executive order on 401(k) plans and future investment opportunities. As noted in the blog post:

“On August 7, President Donald Trump signed an executive order that could fundamentally reshape how retirement savings intersect with entrepreneurship and economic growth. The order aims to democratize access to alternative assets within 401(k) plans, opening the door for everyday Americans to invest retirement dollars not only in private equity and private credit, but also directly in small businesses.”

“Public reaction has largely focused on whether such investments are too risky for retirement savers. What has been overlooked is the opportunity this creates for America’s entrepreneurs. As Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council (SBE Council), emphasized in a recent Capital Ideas podcast hosted by the Investor Choice Advocates Network (ICAN), the shift has the potential to unlock an unprecedented flow of capital into small businesses—the very lifeblood of the U.S. economy.”

Kerrigan explains the vast amount of capital the potential change represents, the current barriers in terms of litigation risk for small businesses, and the role of education and transparency is making these changes work. As the blog post summarizes:

“If implemented with clear rules, practical disclosures, and timely action by regulators, this policy could be a watershed moment for U.S. small business. It represents not just a new asset class for retirement savers, but a new era of capital formation, job creation, and innovation. As Kerrigan put it, “We need these types of sources of capital to fund the engine of growth in the United States.”

RELATED CONTENT:

Kerrigan in Real Clear Markets: Trump’s Executive Order on 401(k)s Will Build Retirement Security and Boost Start Up and Small Business Growth

“Unlocking 401(k)s to investment in private markets will enable millions of private sector employees who previously did not have access to now use retirement savings to build wealth and help fund small businesses.”