Access to capital is a major challenge facing the small-business community.
JUNE 12 | Last week, U.S. Sen. Kevin Cramer (R-N.D.) introduced the Unlocking Capital for Small Businesses Act, which aims to provide a simpler regulatory regime for private placement brokers and finders.
This legislation would exempt the above classes from U.S. Securities and Exchange Commission registration required under the Securities Exchange Act, creating a safe harbor for finders, and scaling back regulations for private placement brokers. Supporters of these exemptions and conditions believe the changes will better facilitate capital formation for small businesses without access to institutional investors.
Access to Capital is an NSBA Priority Issue affecting small businesses, and Senator Cramer’s legislation offers a promising tangible step toward action on this major challenge. This pending legislation is also supported by Americans for Prosperity and the Small Business and Entrepreneurship Council.
RELATED | NSBA Member Poll: Access to Capital
“Capital access is critical to the growth and survival of America’s small businesses, and we are grateful that Congress is taking action to help small businesses scale more easily and effectively. Small businesses too often find themselves caught in a divide: they’re becoming too large for family and friends to provide meaningful capital, yet too small for institutional investors to support. Senator Cramer’s Unlocking Capital for Small Business Act will go a long way to freeing up a vital new stream of capital for these small businesses caught in the middle,” Todd McCracken, President and CEO of National Small Business Association, said as quoted in Sen. Cramer’s press release.
Follow NSBA as we continue tracking this and action on our current Priority Issues. Click here for bill text. Click here for one pager from Sen. Cramer’s office.
