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 requires the Advocate for Small Business Capital Formation to provide educational resources and host events. These resources and events are designed to promote capital-raising options for traditionally underrepresented small businesses.
Expected Effects
The bill will likely increase awareness and access to capital for women-owned, minority-owned, and rural small businesses. It also targets businesses affected by natural disasters. Furthermore, it mandates annual meetings with state securities commissions to foster collaboration in assisting small businesses and investors.
Potential Benefits
- Increased access to capital for underrepresented small businesses.
- Enhanced awareness of capital-raising options.
- Improved collaboration between federal and state entities.
- Support for businesses in rural areas and those affected by natural disasters.
- Potential for economic growth in underserved communities.
Potential Disadvantages
- Potential for increased workload for the Advocate for Small Business Capital Formation.
- Possible need for additional resources to fulfill the new mandates.
- Risk of inefficient allocation of resources if not properly managed.
- Limited direct impact on larger economic issues.
- The effectiveness depends on the quality and reach of the educational resources and events.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it aims to promote economic opportunities for small businesses, particularly those that are underrepresented. Congress has the power to regulate commerce through the Securities Exchange Act, as outlined in Article I, Section 8. The act does not infringe upon any specific constitutional rights or freedoms.
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).