HR 1190119th CongressIn Committee

Expanding Access to Capital for Rural Job Creators Act

Introduced: Feb 11, 2025

Financial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Expanding Access to Capital for Rural Job Creators Act modifies the Securities Exchange Act of 1934 to broaden which small businesses are eligible for certain access-to-capital provisions. Specifically, it adds “rural-area small businesses” as a category alongside “women-owned small businesses” in two places within Section 4(j) of the act. In practical terms, this change signals Congress’s intent to extend the same capital-raising benefits or regulatory relief that currently apply to women-owned small businesses to rural-area small businesses as well. The bill has passed the House and is introduced in the Senate, where it was referred to the Committee on Banking, Housing, and Urban Affairs.

Key Points

1The bill amends Section 4(j) of the Securities Exchange Act of 1934 to add “rural-area small businesses” as a recognized category in two specific subsections.
2It expands the reach of provisions that previously applied to women-owned small businesses to now also cover rural-area small businesses.
3The change does not create new funding or a new program; it broadens eligibility within the existing framework for capital access under federal securities law.
4The bill’s impact depends on how Section 4(j)’s provisions operate in practice (e.g., exemptions, regulatory relief, or eligibility criteria) and how regulators implement the change.
5Legislative status: Introduced in the Senate (following House passage on June 23, 2025); referred to the Senate Committee on Banking, Housing, and Urban Affairs for consideration.

Impact Areas

Primary group/area affected: Rural-area small businesses seeking access to capital, including potential fundraising through private offerings or other mechanisms governed by Section 4(j).Secondary group/area affected: Women-owned small businesses, which currently benefit from the same provisions that are being extended to rural-area small businesses; may see similar advantages in capital access.Additional impacts: Regulators (e.g., SEC) and capital markets participants may need to adjust compliance and guidance to reflect the broader eligibility, potentially affecting small-business investment dynamics, rural economic development, and job creation in rural communities.

Generated by gpt-5-nano on Oct 7, 2025