A bill that seeks to expand access to capital for small businesses in rural areas was approved by the House Financial Services Committee.
The bill — called the Expanding Access to Capital for Rural Job Creators Act (H.R. 1190) — would require the Security and Exchange Commission’s (SEC’s) Office of the Advocate for Small Business Capital Formation to add rural small businesses to its list of applicable entities.
The SEC’s Office of the Advocate for Small Business Capital Formation is required to identify problems that small businesses face when securing access to capital and submit an annual report to Congress.
Currently, the list of applicable entities are minority-owned, women-owned, and disaster-stricken small businesses. This bill would add rural small businesses to the list.
“Rural small businesses are the backbone of many of the communities that I represent, but these important job creators often face outsized difficulty accessing the funding they need to grow,” U.S. Rep. Troy Downing (R-MT), the bill’s sponsor, said. “H.R. 1190 will ensure that the SEC’s Office of the Advocate for Small Business Capital Formation pays rural main street the attention it has long deserved but not received. I appreciate the advocacy of Rep. Bynum and the bipartisan support of my colleagues as we work together to get this bill across the finish line.”
Cosponsors include Reps. Janelle Bynum (D-OR), Zach Nunn (R-IA), Chris Pappas (D-NH), and Pete Sessions (R-TX).
“Rural small businesses are an essential part of our communities and our economy, but they face too many obstacles when they’re trying to get started,” Bynum said. “I’m proud that this bill, which makes it easier for these businesses to get on their feet by expanding their access to capital, is one step closer to becoming law. I’ll partner with anyone to get it done for Oregon’s Fifth, and I look forward to working with my colleagues on both sides of the aisle to deliver results for our small businesses.”
The bill now moves to the full House for consideration.