Promoting Opportunities for Non-Traditional Capital Formation Act
The Promoting Opportunities for Non-Traditional Capital Formation Act would require the Advocate for Small Business Capital Formation (an office within the Securities and Exchange Commission) to expand its outreach and education efforts. Specifically, it adds new duties to provide educational resources and to host or participate in events that inform small businesses and small business investors about non-traditional capital raising options. The outreach must prioritize underrepresented groups (women-owned and minority-owned businesses), rural-area businesses, and small businesses affected by natural disasters. The bill also requires the Advocate to meet at least annually with state securities regulators to discuss coordination and collaboration to help small businesses and investors. If enacted, the measure would broaden federal outreach on financing options and strengthen intergovernmental coordination on small-business capital formation.
Key Points
- 1Amendments to the Securities Exchange Act of 1934 create new duties for the Advocate for Small Business Capital Formation, adding educational and outreach responsibilities.
- 2New outreach categories include: (i) underrepresented small businesses (women-owned and minority-owned), (ii) rural-based small businesses, and (iii) small businesses affected by hurricanes or other natural disasters.
- 3The Advocate must host or participate in events and provide educational resources about non-traditional capital raising options for small businesses and investors.
- 4The Advocate must meet at least annually with representatives of state securities commissions to discuss collaboration and coordination on assisting small businesses and small investors.
- 5The bill moves through the legislative process (it passed the House on June 23, 2025 and was referred in the Senate; status in the Senate is introduced/referred).