Promoting Opportunities for Non-Traditional Capital Formation Act
- Bill Number
- H.R. 3422
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Passed House
- Latest Action
- 2025-06-24: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-07-11T01:08:27Z
AI-Generated Summary
Purpose
The legislation, titled the "Promoting Opportunities for Non-Traditional Capital Formation Act," aims to support small businesses—particularly those that are traditionally underrepresented—in accessing capital by expanding the educational and outreach duties of a specific government advocate within the Securities and Exchange Commission (SEC). This helps raise awareness of funding options and fosters better coordination between federal and state regulators.
Key Provisions
- Educational and Outreach Requirements: The Advocate for Small Business Capital Formation (a role within the SEC that assists small businesses with capital raising) must provide educational resources and host or participate in events. These activities focus on informing small businesses and investors about capital raising options, with emphasis on:
- Underrepresented small businesses, such as those owned by women or minorities.
- Businesses in rural areas.
- Businesses impacted by hurricanes or other natural disasters.
- Annual Coordination Meetings: The Advocate must meet at least once a year with representatives from state securities commissions (state-level regulators of investments) to discuss ways to collaborate on helping small businesses and investors.
Significant Changes to Existing Law
This bill amends Section 4(j)(4) of the Securities Exchange Act of 1934, which outlines the duties of the Advocate for Small Business Capital Formation. The changes:
- Add two new subparagraphs (I and J) to the list of the Advocate's responsibilities.
- Previously, the section did not explicitly require outreach to specific underserved groups or annual meetings with state regulators; these additions build on existing duties like advising on capital formation rules.
Potential Impacts
- On Government Agencies: Enhances the SEC's role in small business support by mandating more targeted education and inter-agency collaboration, potentially increasing workload for the Advocate's office and state securities commissions without adding new funding.
- On Citizens: Benefits small business owners, especially in underserved communities, by improving access to information on funding sources like loans, investments, or grants. This could lead to more equitable economic opportunities but may not directly affect the general public.
- On International Relations: No apparent impacts, as the bill focuses on domestic U.S. securities regulation and small business support.
Main Stakeholders Affected
- Small Businesses: Primary beneficiaries, including women-owned, minority-owned, rural, and disaster-affected enterprises, which gain better awareness of capital options.
- Investors: Small business investors who participate in or benefit from educational events.
- Government Entities: The SEC's Advocate for Small Business Capital Formation (directly tasked with new duties) and state securities commissions (involved in annual meetings).
- Broader Community: Advocacy groups for underrepresented entrepreneurs may see increased support for their members.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the SEC's existing framework under the Securities Exchange Act without creating new enforcement powers or penalties, ensuring compliance through administrative duties. No challenges to federal authority over securities regulation.
- Constitutional: Aligns with Congress's power to regulate interstate commerce (including securities markets) and promote general welfare; no apparent free speech, equal protection, or other constitutional concerns.
- Political: Promotes economic inclusion and small business resilience, potentially appealing across party lines by addressing disparities in capital access. It reflects ongoing policy priorities for equity in entrepreneurship but introduces no major controversies or shifts in regulatory power.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-06-24: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-06-23: Motion to reconsider laid on the table Agreed to without objection.
- 2025-06-23: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 87 (Roll no. 174). (text: CR H2875) (Roll call 174)
- 2025-06-23: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 87 (Roll no. 174). (text: CR H2875) (Roll call 174)
- 2025-06-23: Considered as unfinished business. (consideration: CR H2879)
- 2025-06-23: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- 2025-06-23: DEBATE - The House proceeded with forty minutes of debate on H.R. 3422.
- 2025-06-23: Considered under suspension of the rules. (consideration: CR H2875-2876)
- 2025-06-23: Mr. Downing moved to suspend the rules and pass the bill, as amended.
- 2025-06-03: Placed on the Union Calendar, Calendar No. 87.
- 2025-06-03: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-117.
- 2025-06-03: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-117.
- 2025-05-20: Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
- 2025-05-20: Committee Consideration and Mark-up Session Held
- 2025-05-15: Referred to the House Committee on Financial Services.
Bill Versions
- Promoting Opportunities for Non-Traditional Capital Formation Act — issued 2025-06-23 — PDF (4 pages)
- Promoting Opportunities for Non-Traditional Capital Formation Act — issued 2025-05-15 — PDF (3 pages)
- Promoting Opportunities for Non-Traditional Capital Formation Act — issued 2025-06-24 — PDF (3 pages)
- Promoting Opportunities for Non-Traditional Capital Formation Act — issued 2025-06-03 — PDF (6 pages)