Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee and Congresswoman Ann Wagner (R-MO), announced introduction of H.R. 3422, the “Promoting Opportunities for Non-Traditional Capital Formation Act.” The bill would require the Securities and Exchange Commission’s (SEC) Office of the Advocate for Small Business Capital Formation to better serve underrepresented small businesses and rural entrepreneurs by hosting events and providing educational resources that highlight capital-raising opportunities available to them. It would also direct the Office to meet annually with state securities regulators to ensure coordinated efforts between the state and federal levels and that these efforts are effectively addressing the unique needs of these communities.

Many small businesses—particularly those owned by women, people of color, and rural entrepreneurs—still face significant barriers to accessing the capital and other critical resources necessary for growth and success. In response, the Office of the Advocate for Small Business Capital Formation was created specifically to identify and address the unique challenges faced by these historically marginalized groups while advancing the interests of small businesses and their investors at the SEC and within the capital markets. The “Promoting Opportunities for Non-Traditional Capital Formation Act” would further enhance the Office’s capacity to engage with and support the communities it was established to serve.

“Your zip code or your background should never dictate whether your business succeeds. But for too many small businesses in rural and underrepresented communities across the United States, getting the funding and resources to start and sustain a business is still a real challenge,” said Congresswoman Waters. “My bill aims to tackle this issue by ensuring the SEC’s Office of the Advocate for Small Business Capital Formation actively engages with these communities, including by meeting entrepreneurs and investors where they are, and providing them with critical educational tools and new pathways to capital. By removing these obstacles, we can help create real opportunities for small businesses to succeed while building thriving communities and a strong economy. Last Congress, this bill passed through the House with broad bipartisan support because supporting our nation’s small businesses is a bipartisan priority. I look forward to passing this bill into law.”

Congresswoman Waters previously introduced the “Promoting Opportunities for Non-Traditional Capital Formation Act,” in 2023, which passed the House by a bipartisan vote of 309-67 under suspension of the rules.

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