Advocating for Small Business Act

The Advocating for Small Business Act would require the Securities and Exchange Commission (SEC) to establish Offices of Small Business within each division that writes financial regulations. These new offices would work with the existing Office of the Advocate for Small Business Capital Formation to ensure small business concerns are considered when the SEC creates rules about raising capital and investor protection.

Currently, the SEC has no dedicated office focused specifically on small business interests during its rule-making process. Supporters argue that small businesses face unique challenges in raising capital and navigating financial regulations, and they deserve a formal voice in how those rules are written. By creating these offices, the bill aims to give startups and growing companies early and consistent input into SEC policy decisions that affect their ability to raise money and grow.

If enacted, the SEC would need to hire staff and establish procedures for these new offices to operate and communicate with other SEC divisions. The bill has passed committee review with strong bipartisan support and is now eligible for a full House floor vote.