[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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