U.S. Sen. Tim Scott (R-SC) introduced legislation to boost avenues for capital formation.
His bill, the Empowering Main Street in America Act, seeks to streamline and modernize the rules governing capital raises for public and private markets. This begins with tailored regulatory relief to ensure the current regulatory environment doesn’t disproportionately impact small businesses’ ability to raise funding to grow their businesses.
Further, the Empowering Main Street in America Act seeks to improve access to capital in rural and non-metropolitan hubs.
“Our capital markets system is the envy of the world and has helped many Americans build wealth and save for their futures. But unfortunately for individuals in communities like the one I grew up in, investing in a local venture or raising capital to grow a business seems out of reach. We need to change that – and this comprehensive legislation will create economic opportunity and provide more Americans with the resources necessary to achieve financial security for their families and realize their version of the American Dream, while ensuring small business owners can access capital to grow and innovate,” Scott, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, said.
Sens. Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), John Kennedy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Katie Britt (R-AL), Kevin Cramer (R-ND), Steve Daines (R-MT), and Jerry Moran (R-KS) are co-sponsors of the bill.
“Republicans are committed to addressing and correcting the burdensome regulatory regime that limits the ability of small businesses to grow. Cleaning up bureaucratic red tape will allow these small entities to readily access our capital markets, and will provide more opportunities for retail investors,” Crapo said.