H.R. 3422: Promoting Opportunities for Non-Traditional Capital Formation Act

This bill, titled the Promoting Opportunities for Non-Traditional Capital Formation Act, aims to enhance the resources available for traditionally underrepresented small businesses to raise capital. It amends the Securities Exchange Act of 1934 by placing emphasis on supporting specific groups of small businesses and improving cooperation between federal and state regulatory bodies.

Key Objectives of the Bill

The bill specifically directs the Advocate for Small Business Capital Formation to:

• Provide Educational Resources: Create materials and host events aimed at educating small businesses and small business investors about various capital raising options available to them.
• Focus on Underrepresented Groups: Increase awareness and support for capital raising options specifically for:
  • women-owned small businesses,
  • minority-owned small businesses,
  • businesses located in rural areas, and
  • small businesses impacted by hurricanes or other natural disasters.
• Facilitate Collaboration: Engage in at least one meeting annually with representatives from State securities commissions to explore and coordinate efforts to assist small businesses and their investors.

Impact on Small Businesses

This bill aims to create a more supportive environment for small businesses that have historically faced difficulties in accessing capital. By focusing on outreach and education, it seeks to empower these businesses with the knowledge they need to successfully raise funds.

Regulatory Collaboration

The annual meetings with state securities officials emphasize the importance of collaboration in enhancing the capital-raising landscape for small businesses. This collaboration may lead to more streamlined processes and coordinated efforts to support these businesses effectively.

Overall Intent

The overall intent of the bill is to promote economic growth and resilience, particularly among underrepresented groups in the small business sector, by improving their access to financing options and fostering a supportive regulatory environment.

Relevant Companies

None found.