Passed
321 Yea87 Nay23 Not voting2/3 required
HR-3422-119
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sponsored by Maxine Waters (D-CA)
What it does
This bill would amend the Securities Exchange Act of 1934 to expand the duties of the SEC's Advocate for Small Business Capital Formation. It would require that office to provide educational resources and host or participate in events raising awareness of capital-raising options for women-owned, minority-owned, rural, and disaster-affected small businesses. It would also require the Advocate to meet at least annually with state securities regulators to discuss coordination efforts on behalf of small businesses and small business investors.
Who benefits
Women-owned and minority-owned small businesses that may be less aware of or less connected to federal capital-raising programs. Small businesses in rural areas with limited access to financial advisors or investor networks. Small businesses recovering from hurricanes or other natural disasters. Small business investors seeking to fund these enterprises. State securities regulators who would gain a formal annual coordination channel with the federal SEC. Attorneys, consultants, and financial advisors who serve these business segments may see increased demand for their services.
Who is hurt
There are no direct, identifiable groups who would be materially harmed by this bill. The SEC's Advocate for Small Business Capital Formation would take on additional duties, which could strain existing staff and budget resources if no new funding is appropriated. Larger, well-connected businesses that already benefit from existing outreach may face marginally more competition for investor attention if underrepresented businesses gain better access to capital markets.
Supporters argue
Supporters argue that access to capital is one of the most significant barriers facing women-owned, minority-owned, rural, and disaster-affected small businesses, and that federal outreach can help close that gap at minimal cost. They contend that the SEC's existing Advocate office is already positioned to perform this function and that adding these duties is a targeted, low-cost expansion of an office Congress created precisely to help small businesses navigate securities law — making this a logical and efficient use of existing infrastructure.
Opponents argue
Opponents argue that mandating new outreach duties without appropriating dedicated funding risks spreading the Advocate's office too thin, potentially diluting the quality of assistance provided to all small businesses it currently serves. They contend that educational events and awareness campaigns are unlikely to address the deeper structural barriers — such as credit history gaps, collateral requirements, and investor network disparities — that actually limit capital access for underrepresented businesses, making this bill largely symbolic rather than substantively effective.
Constitutional context
No significant constitutional issues are raised by this bill. Congress has clear authority under the Commerce Clause (Art. I, §8, cl. 3) to regulate securities markets and to direct the activities of federal agencies it has created. This bill modifies the duties of an existing SEC office and does not raise major questions doctrine concerns, as it does not delegate broad new rulemaking authority to an agency.
Checks and balances
Congress gains no new authority; the SEC's Advocate for Small Business Capital Formation gains expanded statutory duties, subject to congressional oversight and appropriations authority.
Historical precedent
The SEC's Advocate for Small Business Capital Formation was created by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which similarly expanded SEC outreach duties to small businesses; this bill follows that structural model.
Passed