Promoting Opportunities for Non-Traditional Capital Formation Act

Floor Speech

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Ms. WATERS. Mr. Speaker, I rise today in support of my bill, H.R. 3422, the Promoting Opportunities for Non-Traditional Capital Formation Act. This bill deals with the Office of the Advocate for Small Business Capital Formation, which is an independent SEC office that was established to advance the interests of small businesses.

The office proactively works 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 small business advocate to provide educational resources and host events to promote capital-raising options for these underrepresented small businesses. 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, or NASAA, strongly supports this legislation, particularly as it would strengthen collaboration and coordination between regulators.

In a letter to my office, written in support of this bill when it was previously introduced, NASAA emphasized former Republican SEC Commissioner Michael Piwowar's comments that ``for a capital formation agenda to succeed, it is essential that State and Federal regulators work together to support the businesses that seek to engage in these offerings while also protecting investors.''

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.

Mr. Speaker, I thank my colleague (Mrs. Wagner) for cosponsoring my bill, and I urge my colleagues to join us in passing this bill into law.

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