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," aims to amend the Securities Exchange Act of 1934 to facilitate greater access to capital for small businesses located in rural areas. The bill specifically targets Section 4(j) of the Act, seeking to include "rural-area small businesses" alongside "women-owned small businesses" in provisions related to capital access.
The bill was introduced in the House of Representatives and referred to the Committee on Financial Services. It was subsequently reported with an amendment and committed to the Committee of the Whole House on the State of the Union.
The intended outcome is to stimulate economic activity and job creation in rural communities by easing the process for small businesses to secure funding.
Expected Effects
The primary effect of H.R.1190 would be to broaden the scope of existing programs and initiatives under the Securities Exchange Act of 1934 to specifically include rural-area small businesses. This could lead to increased investment and lending activity in these areas.
By making it easier for rural small businesses to access capital, the bill could stimulate local economies and create new employment opportunities. This may also foster innovation and entrepreneurship in rural communities.
However, the actual impact will depend on how effectively the amended provisions are implemented and the extent to which rural businesses are able to take advantage of the new opportunities.
Potential Benefits
- Increased access to capital for rural small businesses, fostering growth and expansion.
- Potential for job creation in rural communities, addressing unemployment and underemployment.
- Stimulation of local economies through increased investment and business activity.
- Encouragement of entrepreneurship and innovation in rural areas.
- Alignment with the goal of promoting economic development in underserved regions.
Potential Disadvantages
- Potential for unintended consequences or loopholes that could be exploited.
- Risk of insufficient oversight or regulation, leading to misuse of funds.
- Limited impact if other barriers to capital access, such as lack of infrastructure or skilled labor, are not addressed.
- Possible displacement of existing businesses or industries due to increased competition.
- The benefits may disproportionately accrue to certain types of rural businesses or communities, exacerbating existing inequalities.
Constitutional Alignment
The bill appears to align with the spirit of the Constitution, particularly the goal of promoting the general welfare as stated in the Preamble. Congress has the power to regulate commerce through Article I, Section 8, Clause 3 (the Commerce Clause), which provides a basis for legislation affecting economic activity, including access to capital for businesses.
Furthermore, the bill does not appear to infringe upon any specific rights or liberties guaranteed by the Bill of Rights or other constitutional amendments. It aims to address economic disparities and promote opportunities in rural areas, which can be seen as consistent with principles of equality and fairness.
However, the extent of federal intervention in the economy is a matter of ongoing debate, and some may argue that this bill exceeds the proper scope of congressional authority.
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).