H.R.1190 - Expanding Access to Capital for Rural Job Creators Act (119th Congress)
Summary
H.R. 1190, the "Expanding Access to Capital for Rural Job Creators Act," amends the Securities Exchange Act of 1934 to include rural-area small businesses in existing provisions that support access to capital for women-owned small businesses. Specifically, it modifies Section 4(j) of the Act to ensure that rural small businesses are considered in programs and initiatives aimed at increasing capital access. The bill was passed by the House of Representatives and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Expected Effects
The likely effect of this bill, if enacted, is to increase the availability of capital for small businesses located in rural areas. This could stimulate economic activity and job growth in these regions. The amendment aims to level the playing field for rural businesses, which often face unique challenges in accessing funding compared to their urban counterparts.
Potential Benefits
- Increased access to capital for rural small businesses.
- Potential for job creation and economic growth in rural areas.
- Support for entrepreneurship and innovation in underserved communities.
- Enhanced competitiveness of rural businesses.
- Alignment with existing efforts to support small businesses.
Potential Disadvantages
- Potential for unintended consequences if the definition of "rural-area small businesses" is not clearly defined.
- Risk of insufficient oversight in the allocation of capital.
- Limited impact if other barriers to rural business growth are not addressed.
- Possible competition with existing programs for women-owned small businesses.
- May not address the root causes of limited capital access in rural areas.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate commerce among the several states. Supporting rural businesses can be seen as a way to promote interstate commerce. There are no apparent violations of individual rights or freedoms as outlined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).