[Congressional Record Volume 171, Number 107 (Monday, June 23, 2025)]
[House]
[Pages H2875-H2876]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROMOTING OPPORTUNITIES FOR NON-TRADITIONAL CAPITAL FORMATION ACT
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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Montana (Mr. Downing) and the gentleman from California (Mr. Sherman)
each will control 20 minutes.
The Chair recognizes the gentleman from Montana.
General Leave
Mr. DOWNING. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and
include extraneous material in this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Montana?
There was no objection.
Mr. DOWNING. Mr. Speaker, I yield myself such time as I may consume.
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.
Mr. Speaker, I urge my colleagues to support this bipartisan effort,
and I reserve the balance of my time.
Mr. SHERMAN. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from California (Ms. Waters), the ranking member of our
full committee.
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.
Mr. SHERMAN. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I rise in strong support of the bill of my good friend
and ranking member of the Financial Services
[[Page H2876]]
Committee (Ms. Waters), which requires the SEC's Office of Small
Business Advocate to provide educational resources and host events to
promote capital-raising options for small businesses.
Her bill would also require the Small Business Office to coordinate
on an annual basis with State securities commissions to ensure both
Federal and State regulators are working as effectively and efficiently
as possible to address the needs of small businesses.
Mr. Speaker, I urge my colleagues to support Ms. Waters' bill, and I
yield back the balance of my time.
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.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Montana (Mr. Downing) that the House suspend the rules
and pass the bill, H.R. 3422, 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.
Mr. DOWNING. Mr. Speaker, on that I demand the yeas and nays.
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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