HR1190-119

What This Bill Does

This bill expands access to capital for small businesses in rural areas by amending the Securities Exchange Act of 1934. It adds "rural-area small businesses" to existing provisions that already support women-owned small businesses, ensuring rural entrepreneurs receive similar consideration when it comes to SEC-related capital access programs.

Who Benefits and How

Rural-area small businesses are the primary beneficiaries. By being explicitly included in the Securities Exchange Act provisions alongside women-owned small businesses, rural entrepreneurs gain improved access to capital markets and SEC programs designed to help small businesses raise funds. This could make it easier for businesses in rural communities to attract investors and secure financing.

Who Bears the Burden and How

This bill creates minimal new burdens. It simply extends existing programs to a new category of businesses without creating new regulatory requirements or costs. The SEC may need to track and report on rural-area small businesses similarly to how they already track women-owned small businesses, but this represents a minor administrative addition.

Key Provisions

• Amends Section 4(j) of the Securities Exchange Act of 1934 to include rural-area small businesses in paragraph (4)(C), which relates to SEC advocacy and support for small business capital formation
• Adds rural-area small businesses to paragraph (6)(B)(iii), ensuring they are included in SEC reporting and tracking related to small business access to capital
• Places rural businesses on equal footing with women-owned small businesses in terms of SEC attention and support
• No new regulatory burdens or compliance requirements are created for any party