Expanding Access to Capital for Rural Job Creators Act
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Would require the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation to include rural-area small businesses in its reporting on capital-access issues, putting them on equal footing with other underserved categories already covered by the statute.
What this bill would do
What it would do
The bill would amend Section 4(j) of the Securities Exchange Act of 1934 to add "rural-area small businesses" alongside "women-owned small businesses" in two places: in the list of business categories the SEC's Office of the Advocate for Small Business Capital Formation must address, and in the annual report provision that tracks capital-formation issues affecting those categories. In practical terms, rural-area small businesses would be formally recognized in the SEC advocacy and reporting framework that already covers other underserved groups.
The bill does not itself create a new program, direct funding, or change any substantive securities rules. It would only ensure that the Advocate's office considers and reports on the distinct capital-access challenges facing rural-area small businesses as part of its existing statutory duties.
Key provisions
- 1Would add rural-area small businesses to the list of business categories the SEC's Office of the Advocate for Small Business Capital Formation must address when identifying capital-access issues.
- 2Would add rural-area small businesses to the annual report provision requiring the Advocate's office to document capital-formation issues affecting underserved business categories.
Who would be affected
Rural-area small businesses seeking to raise capital through securities markets — the population that currently lacks explicit recognition in the SEC's small-business advocacy framework. The SEC's Office of the Advocate for Small Business Capital Formation would be directly directed to cover this group in its analysis and annual reporting.
Why it matters
By naming rural-area small businesses in the statute, the bill would obligate the SEC's Advocate office to track and surface the specific barriers those businesses face when trying to raise capital — potentially influencing future rulemaking or Congressional attention to rural financing gaps that might otherwise be overlooked in the agency's work.
What would change
Changes to existing law
Amends Securities Exchange Act of 1934 (Sec. 2)
Adds 'rural-area small businesses' to two provisions in Section 4(j) governing the SEC Office of the Advocate for Small Business Capital Formation — one covering addressed issues and one covering annual reporting.
Agencies directed to act
How implementation would work
No new rulemaking is required. The SEC's Office of the Advocate for Small Business Capital Formation would incorporate rural-area small businesses into its existing processes for identifying capital-formation issues and preparing its annual report to Congress. The office would need to gather data and stakeholder input specific to rural businesses alongside the other categories already in its mandate, and include findings in annual reports going forward.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
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This bill requires the Office of the Advocate for Small Business Capital Formation within the Securities and Exchange Commission to report on issues encountered by rural-area small businesses.
Legislative subjects
Business investment and capital; Finance and Financial Sector; Rural conditions and development; Securities and Exchange Commission (SEC); Small business
Committee report
H. Rept. 119-122