Promoting Opportunities for Non-Traditional Capital Formation Act

Floor Speech

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

At the beginning of this Congress, Chairman McHenry expressed an interest in working with me to pass sensible, pro-investor, and pro- capital formation bills, particularly if they will help small businesses.

My bill would do just that. It will encourage the SEC to better serve the needs of underserved small businesses, coordinate better with State regulators, all the while protecting investors.

The Office of the Advocate for Small Business Capital Formation is an independent SEC office that was established to advance the interests of small businesses. Under my bill, the office would be directed to proactively work to identify and address unique challenges faced by minority owned, women-owned, and rural small businesses, as well as businesses located in natural disaster areas.

My bill requires the SEC's Small Business Advocate to provide educational resources and host events to promote capital-raising options for these underrepresented small businesses and businesses in rural areas.

We all know that oftentimes you need that face-to-face connection to tell your story, but all too often, minority-owned businesses aren't invited to those gatherings.

My bill would also require the office to meet annually with representatives of State Securities Commissions to ensure that there is a whole-of-government approach to addressing the unique needs of underrepresented businesses.

The North American Securities Administrators Association strongly supports this legislation, particularly as it would strengthen collaboration and coordination between regulators.

Indeed, my bill makes sure that Federal regulators and State regulators do just that, while at the same time advancing the cause of small business capital formation across the spectrum. I hope my colleagues will join me in passing this bill.

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Ms. WATERS. Mr. Speaker, I have no further speakers. I yield myself the balance of my time.

I am pleased to have worked with Chairman McHenry on this bill, and I look forward to continuing to work with him on other bills that are pro-small business and pro-capital formation, while at the same time strengthening the ability of our market and investor protection agencies to do their jobs.

Mr. Speaker, I again urge my colleagues to support this bill, and I yield back the balance of my time.

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