Promoting Opportunities for Non-Traditional Capital Formation Act
Description
This bill would require the SEC to expand educational resources and outreach regarding capital-raising for underrepresented businesses.
Summary
What it does
This bill would expand the responsibilities of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation to include promoting capital-raising options for rural businesses, those affected by natural disasters, and underrepresented small businesses. The office would be required to provide educational resources and host events for these groups, as well as meet annually with state securities commissions to coordinate efforts.
Who is affected
This bill affects the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation and state securities commissions, who must collaborate on capital-raising coordination. Additionally, the bill impacts underrepresented small businesses, businesses located in rural areas, and businesses affected by natural disasters through the provision of new educational resources and events.
Key provisions
- Expansion of Small Business Advocate functions. The bill increases the responsibilities of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation regarding outreach and coordination.
- Capital-raising education and outreach. The office is required to provide educational resources and host or participate in events that promote capital-raising options for rural businesses, those affected by natural disasters, and underrepresented small businesses.
- State securities commission collaboration. The office must conduct annual meetings with representatives from state securities commissions to discuss and improve coordination and collaboration efforts.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
The bill expands the existing functions and responsibilities of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation.
Stated purpose
The bill aims to expand the role of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation by requiring it to promote capital-raising options for rural, disaster-affected, and underrepresented small businesses. It also seeks to improve intergovernmental coordination by mandating annual meetings with state securities commissions to discuss collaborative opportunities.