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 sections concerning access to capital. This bill aims to facilitate capital formation for small businesses located in rural areas by directing resources and attention towards them.
The amendment specifically targets Section 4(j) of the Securities Exchange Act, which deals with the Small Business Advocate.
The bill passed the House of Representatives on June 23, 2025.
Expected Effects
The likely effect of this bill is an increase in investment and lending activity targeted towards rural-area small businesses. This could lead to job creation and economic development in these areas.
By including rural-area small businesses alongside women-owned small businesses in existing provisions, the bill leverages established frameworks to support a specific demographic.
This could also encourage further legislation and initiatives focused on rural economic development.
Potential Benefits
- Increased access to capital for rural small businesses.
- Potential for job creation in rural areas.
- Economic growth and development in underserved communities.
- Enhanced competitiveness of rural businesses.
- Streamlined access to resources through existing frameworks.
Potential Disadvantages
- Potential for unintended consequences if not implemented effectively.
- Risk of funds being misallocated or misused.
- May not address all the challenges faced by rural businesses.
- Could create new regulatory burdens or compliance costs.
- Limited impact if not accompanied by other supportive policies.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce among the several states. By facilitating capital access for rural businesses, the bill aims to stimulate economic activity, which falls under the purview of interstate commerce.
Furthermore, the bill's objective of promoting economic development in rural areas could be viewed as an effort to "promote the general Welfare," as stated in the Preamble of the Constitution.
There are no apparent conflicts with individual liberties or rights protected by 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).