H.R.3422 - Promoting Opportunities for Non-Traditional Capital Formation Act (119th Congress)
Summary
H.R.3422, the "Promoting Opportunities for Non-Traditional Capital Formation Act," aims to amend the Securities Exchange Act of 1934. The amendment focuses on enhancing the role of the Advocate for Small Business Capital Formation. The goal is to provide more educational resources and events to support capital raising for traditionally underrepresented small businesses.
Expected Effects
The bill will likely lead to increased awareness and access to capital for women-owned, minority-owned, and rural small businesses. It also includes businesses affected by natural disasters. Furthermore, it mandates annual meetings with state securities commissions to improve coordination and collaboration in assisting small businesses and investors.
Potential Benefits
- Increased access to capital for underrepresented small businesses.
- Enhanced awareness of capital-raising options through educational resources and events.
- Improved coordination between federal and state entities in supporting small businesses.
- Potential for economic growth in underserved communities.
- Support for businesses recovering from natural disasters.
Potential Disadvantages
- Potential for increased regulatory burden on the Advocate for Small Business Capital Formation.
- Risk of inefficient allocation of resources if the educational programs are not well-targeted.
- Possible unintended consequences from increased access to capital without proper oversight.
- Limited scope, focusing primarily on awareness and education rather than direct financial assistance.
- The effectiveness depends heavily on the quality and reach of the educational resources provided.
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. By promoting capital formation for small businesses, the bill aims to stimulate economic activity, which falls under the purview of interstate commerce regulation. There are no apparent infringements on individual rights or liberties as defined 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).