Promoting Opportunities for Non-Traditional Capital Formation Act

Floor Speech

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Mr. DOWNING. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3422) 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 underrepresented 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. 3422

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 or participate in events for small businesses and small business investors, including to raise awareness of capital raising options for--

``(i) underrepresented small businesses, including women- owned small businesses 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. 3422, the Promoting Opportunities for Non-Traditional Capital Formation Act, and I thank Representative Waters for her leadership on this bipartisan legislation.

Far too often, access to capital depends not on the quality of a business idea but on where that business is located. Data shows that the vast majority of venture capital investment flows to companies in just three States: California, Massachusetts, and New York, leaving entrepreneurs in other regions at a disadvantage.

This bill takes a targeted step to help address that imbalance. It directs the SEC's Office of the Advocate for Small Business Capital Formation to do more to support underserved entrepreneurs, particularly those in rural communities or outside of traditional investment hubs.

Specifically, the bill requires the advocate to provide educational resources and host public events that highlight the capital raising tools available under Federal securities laws. These tools exist, but many founders simply don't know how to use them or that they are even an option.

H.R. 3422 ensures that founders from all backgrounds and regions have the information they need to pursue the capital formation strategy that works best for their businesses.

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Mr. DOWNING. Mr. Speaker, for the reasons I explained earlier, I urge my colleagues to support this bill, and I yield back the balance of my time.

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

The yeas and nays were ordered.

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