Expanding Access to Capital Act of 2023

Floor Speech

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Mr. TIMMONS. Mr. Chair, I rise today in support of H.R. 2799, the Expanding Access to Capital Act. This legislation would provide greater access to funding by strengthening public markets, expanding fundraising opportunities for entrepreneurs, and increasing investment opportunities for everyday Americans.

This package represents a much-needed stimulant to capital formation and would empower small businesses throughout the country.

One particular provision contained in this package is my bill, the Improving Capital Allocation for Newcomers Act, also known as the ICAN Act, which seeks to generate more regional venture capital participation outside of Silicon Valley by raising the cap on qualifying venture capital funds from $10 million to $150 million and raising the number of permitted investors from 250 to 600.

This would allow venture funds to raise more money from more individuals, enabling funds to build an investor base outside of traditional financial centers.

According to the SEC's Advocate for Small Business Capital Formation report, 78 percent of small business owners are concerned about their ability to access capital. My bill would alleviate some of this concern by making it easier for venture capital to expand into new regions and communities.

Simply put, new venture funds mean new opportunities for small businesses and innovators to gain the funding they need to develop their ideas, promote good-paying jobs, and grow their companies.

Mr. Chair, an entrepreneur in Spartanburg, South Carolina, should be afforded the same opportunities to grow their businesses as an entrepreneur in Silicon Valley.

I am proud to say this legislation democratizes finances and allows for more South Carolinians to support local economic ventures, providing capital outside of traditional venture capital hubs and bringing these funds from Silicon Valley to the Fourth District of South Carolina.

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