Advocating for Small Business Act
Summary
What This Bill Does
This bill changes the Securities Exchange Act by requiring the Securities and Exchange Commission to create an Office of Small Business within each SEC division that performs rule-writing activities. Each office must coordinate with the existing Office of the Advocate for Small Business Capital Formation on rules and policy priorities related to capital formation.
The bill does not directly change securities offering exemptions, registration thresholds, investor-protection rules, or disclosure obligations. Its practical effect is institutional: small-business capital-formation concerns would have a formal point of contact inside every SEC rule-writing division, not only in a standalone advocate office.
Who Benefits and How
Small businesses seeking capital benefit because SEC rule-writing divisions would have dedicated offices focused on small-business capital-formation issues. Small public companies and private issuers benefit from more structured advocacy inside the SEC when rules affect offering costs, disclosure burdens, or access to investors. The Office of the Advocate for Small Business Capital Formation benefits from required coordination partners across rule-writing divisions. Securities lawyers and small-issuer advisers benefit from clearer SEC channels for capital-formation policy input. Investors in small issuers may benefit if better-tailored rules improve access to information while preserving investor protection.
Who Bears the Burden and How
SEC rule-writing divisions must create and staff Offices of Small Business and coordinate policy work with the Advocate for Small Business Capital Formation. SEC commissioners and division directors must account for the new internal offices when setting rulemaking priorities. Investor-protection staff may face pressure if small-business capital-formation offices push for lighter disclosure or compliance burdens. Large issuers and market participants may receive less focused attention if SEC rule-writing capacity shifts toward small-business issues.
Key Provisions
- Amends section 4 of the Securities Exchange Act of 1934.
- Requires an Office of Small Business within each SEC division that performs rule-writing activities.
- Requires those offices to coordinate with the Office of the Advocate for Small Business Capital Formation.
- Provides a formal SEC channel for capital-formation rules and policy priorities affecting small businesses.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Requires the SEC to establish an Office of Small Business inside each rule-writing division and coordinate those offices with the Office of the Advocate for Small Business Capital Formation on capital-formation rules and policy priorities.
Key Policy Areas
Securities Regulation, Small Business, Capital Formation, SEC
Primary Purpose
Requires the SEC to establish an Office of Small Business inside each rule-writing division and coordinate those offices with the Office of the Advocate for Small Business Capital Formation on capital-formation rules and policy priorities.
Policy Domains
House resolution provisions
Identified Gains
- Small businesses seeking capital
- Small public companies
- Private issuers
- Office of the Advocate for Small Business Capital Formation
- Securities lawyers
- Small-issuer advisers
- Investors in small issuers
Identified Costs
- SEC rule-writing divisions
- SEC commissioners
- SEC division directors
- Investor-protection staff
- Large issuers
- Market participants outside small-business capital formation
Sponsors
Legislative Progress
ReportedAdditional sponsor: Mr. Fitzpatrick
Committed to the Committee of the Whole House on the …
Placed on the Union Calendar, Calendar No. 207.
Reported by the Committee on Financial Services. H. Rept. 119-250.
Ordered to be Reported by the Yeas and Nays: 50 …
Committee Consideration and Mark-up Session Held
Introduced in House
Mr. Vicente Gonzalez of Texas (for himself and Mr. Garbarino) …
Referred to the House Committee on Financial Services.
Mr. Vicente Gonzalez of Texas (for himself and Mr. Garbarino) …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Investor-protection staff, Private issuers, Small businesses seeking capital
Positive-direction: Private issuers, Small businesses seeking capital, Small public companies
Negative-direction: Investor-protection staff
Office of the Advocate for Small Business Capital Formation, SEC rule-writing divisions
Positive-direction: Office of the Advocate for Small Business Capital Formation
Negative-direction: SEC rule-writing divisions
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "sec"
- → Securities and Exchange Commission
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology