Promoting Opportunities for Non-Traditional Capital Formation Act

Floor Speech

BREAK IN TRANSCRIPT

Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2796) to amend the Securities Exchange Act of 1934 to require the Advocate for Small Business Capital Formation to provide educational resources and host events to promote capital raising options for traditionally under-represented small businesses, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 2796

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Promoting Opportunities for Non-Traditional Capital Formation Act''. SEC. 2. PROMOTING CAPITAL RAISING OPTIONS FOR TRADITIONALLY UNDERREPRESENTED SMALL BUSINESSES.

Section 4(j)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78d(j)(4)) is amended--

(1) in subparagraph (G), by striking ``and'' at the end;

(2) in subparagraph (H), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

``(I) provide educational resources and host events to raise awareness of capital raising options for--

``(i) underrepresented small businesses, including women- owned and minority-owned small businesses;

``(ii) businesses located in rural areas; and

``(iii) small businesses affected by hurricanes or other natural disasters; and

``(J) at least annually, meet with representatives of State securities commissions to discuss opportunities for collaboration and coordination with respect to efforts to assist small businesses and small business investors.''.

Mr. Speaker, I rise in support of H.R. 2796, the Promoting Opportunities for Non-Traditional Capital Formation Act.

I thank my colleague and ranking member of the Financial Services Committee, Ms. Waters, for her work on this commonsense, bipartisan legislation to improve access to capital for underserved entrepreneurs and businesses from overlooked parts of the country.

When trying to raise capital to start or grow their businesses, entrepreneurs and founders need as little friction as possible. Unfortunately, access to capital and funding is more challenging for some than others. Likewise, funding is harder to obtain outside of a few select regions.

For example, most venture capital funding goes to companies in just three States: California, Massachusetts, and New York.

Likewise, less than 3 percent of venture dollars went to women, Black, and Latino founders. As a result, Congress should take steps to help companies and entrepreneurs from all geographic regions have access to resources that they need to grow.

This bill would require the SEC's Office of the Advocate for Small Business Capital Formation, or the Advocate, to provide educational resources and host events to promote capital-raising options for underrepresented small businesses and businesses in rural areas.

Last month, the Financial Services Committee passed numerous bipartisan bills out of our committee to facilitate capital formation and increase access to capital for entrepreneurs and small businesses. H.R. 2796 is a commonsense piece of our committee's efforts and complements the other bills that we passed.

Mr. Speaker, by requiring the Advocate to provide educational resources and host events to promote capital-raising options for underserved entrepreneurs, this bill will assist entrepreneurs throughout the entire country in utilizing the capital-raising provisions within our securities laws best suited for their needs and circumstances. For these reasons, I urge my colleagues to support H.R. 2796.

BREAK IN TRANSCRIPT

Mrs. WAGNER. Mr. Speaker, are there further requests for time on the other side, or does the gentlewoman from California, is she prepared to close and yield back?

BREAK IN TRANSCRIPT

Mrs. WAGNER. Mr. Speaker, I simply urge my colleagues to support H.R. 2796, and I yield back the balance of my time.

Ms. JACKSON LEE. Mr. Speaker, I rise in support of H.R. 2796 the Promoting Opportunities for Non-Traditional Capital Formation Act, which expands the functions of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation.

Additionally, this bill amends the Securities Exchange Act of 1934 to require the Advocate for Small Business Capital Formation to provide educational resources and host events to promote capital raising options for traditionally underrepresented small businesses, and for other purposes.

Specifically, the office must provide educational resources and host events to promote capital-raising options for underrepresented small businesses and businesses in rural areas.

Furthermore, the office must meet annually with representatives of state securities commissions to discuss opportunities for collaboration and coordination.

The passage of this legislation is essential for people in my home state of Texas and the constituents of the 18th Congressional District.

In the Houston metro area, 82 percent of operating firms have fewer than 20 employees.

Together, all these businesses employ around 400,000 workers, about 14 percent of the regional workforce, according to the U.S. Census Bureau's Business Dynamics Statistics.

Nearly 97 percent of businesses in the region have fewer than 500 employees, the standard to be considered a small business, and collectively employ around 44 percent of the region's workforce.

Additionally, the unemployment rate for Houston is around 4.9 percent.

Small businesses play an important role in creating jobs and advancing economic stability for the American people.

The Promoting Opportunities for Non-Traditional Capital Formation Act will work to provide resources to further help small businesses.

I urge all my colleagues to support this legislation.

BREAK IN TRANSCRIPT

Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

BREAK IN TRANSCRIPT

Source