Promoting Opportunities for Non-Traditional Capital Formation Act

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.

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.

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. Speaker, for the reasons I explained earlier, I urge my colleagues to support this bill, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

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. Speaker, I yield such time as she may consume to the gentlewoman from California (Ms. Waters), the ranking member of our full committee.

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

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. Speaker, I was absent from the floor and the roll call votes today.

Had I been present, I would have voted: YEA on Roll Call No. 172, the Motion to Suspend the Rules and Pass H.R. 1998; YEA on Roll Call No. 173, the Motion to Suspend the Rules and Pass H.R. 3394; and YEA on Roll Call No. 174, the Motion to Suspend the Rules and Pass H.R. 3422.

Mr. Speaker, I was necessarily absent and missed three votes on the House Floor today. Had I been present, I would have voted YEA on Roll Call No. 172, H.R. 1998; YEA on Roll Call No. 173, H.R. 3394; and YEA on Roll Call No. 174, H.R. 3422.