Washington D.C. – U.S. senators from Alabama and Nevada have introduced bipartisan legislation aimed at reducing federal red tape and improving how small businesses communicate with the Securities and Exchange Commission (SEC).
The proposed Improving Access to Small Business Information Act seeks to streamline information-gathering processes used by the SEC’s Office of the Advocate for Small Business Capital Formation, an office created by Congress in 2016 to represent the interests of small businesses and their investors within capital markets.
Currently, under the Paper Reduction Act of 1995, the Office must receive formal approval from the Office of Management and Budget (OMB) before collecting information from small businesses. That approval process can take more than a year, limiting the Office’s ability to conduct surveys and gather timely feedback to inform SEC rulemaking.
“Needless red tape is holding our small businesses back. Small businesses create opportunity, jobs, and economic growth in every corner of our nation—they deserve a federal government that works with them and considers their perspectives during actions and rulemakings,” said one of the bill’s sponsors. “This commonsense legislation would slash red tape, ensure the SEC can better advocate for entrepreneurs, and remove roadblocks to American economic prosperity.”
The legislation would amend the Securities Exchange Act of 1934 to clarify that certain activities conducted by the Office—such as field surveys—do not constitute a “collection of information” under the Paper Reduction Act. This change would allow the Office to gather feedback more efficiently and focus on its mission of facilitating access to capital without lengthy bureaucratic delays.
Another sponsor emphasized the bipartisan intent of the bill and its focus on supporting entrepreneurs. “Congress created the Office of the Advocate for Small Business Capital Formation to support the entrepreneurs that are the backbone of our communities. Now, it’s time for us to support the good work the Office does,” the senator said. “By streamlining the information gathering process, this bipartisan legislation will allow Congress to hear from our small business owners more quickly and rapidly respond to their evolving needs.”
A companion bill in the U.S. House of Representatives, sponsored by members from California and New Jersey, passed earlier this year with strong bipartisan support by a vote of 387–12.
Supporters of the legislation say it builds on ongoing efforts to modernize federal regulatory frameworks and ensure small businesses and entrepreneurs are not burdened by unnecessary or outdated requirements as they seek to grow and access capital.
