[Congressional Record Volume 169, Number 92 (Tuesday, May 30, 2023)]
[House]
[Pages H2654-H2656]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROMOTING OPPORTUNITIES FOR NON-TRADITIONAL CAPITAL FORMATION ACT
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--
[[Page H2655]]
``(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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Missouri (Mrs. Wagner) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Missouri.
General Leave
Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Missouri?
There was no objection.
Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume.
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.
Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
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.
Mr. Speaker, I reserve the balance of my time.
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? I reserve the balance of my time.
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.
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.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Missouri (Mrs. Wagner) that the House suspend the
rules and pass the bill, H.R. 2796, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
=========================== NOTE ===========================
On May 30, 2023, on page H2655, in the third column, the
following appeared:The SPEAKER pro tempore. In the opinion of the
Chair, two-thirds not being in the affirmative, the noes have it.
The online version has been corrected to read: The SPEAKER pro
tempore. In the opinion of the Chair, two-thirds being in the
affirmative, the ayes have it.
========================= END NOTE =========================
Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.
[[Page H2656]]
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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