Washington D.C. – U.S. Senator Katie Britt (R-Ala.) and Senate Banking Committee Ranking Member Tim Scott (R-S.C.), alongside several Republican colleagues, have introduced comprehensive legislation aimed at revitalizing small businesses and enhancing access to capital markets for all Americans. The proposed legislation, titled the Empowering Main Street in America Act, seeks to create job opportunities and stimulate economic growth through improved avenues for capital formation.
This act incorporates two bills introduced by Senator Britt: the Small Entity Update Act and the bipartisan Retirement Fairness for Charities and Educational Institutions Act. Other senators supporting the initiative include Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), and Jerry Moran (R-Kans.).
In her statement, Senator Britt emphasized the importance of accessible capital in achieving the American Dream. “I’m proud to join Senator Tim Scott in introducing the Empowering Main Street in America Act, legislation to strengthen our markets, facilitate capital formation, and expand opportunities for small businesses, entrepreneurs, and hardworking Americans to save, invest, and succeed,” she said.
Ranking Member Scott underscored the legislation’s potential impact on communities, noting, “We need to change that – and this comprehensive legislation will create economic opportunity and provide more Americans with the resources necessary to achieve financial security for their families.”
The Empowering Main Street in America Act aims to provide streamlined access to funding for small businesses and entrepreneurs while enhancing investment opportunities for all Americans. The legislation seeks to refocus the Securities and Exchange Commission (SEC) on facilitating capital formation rather than imposing regulations that hinder investment and innovation.
Recognizing the critical role of small businesses in job creation, the act addresses challenges entrepreneurs face in accessing capital. It aims to modernize regulatory rules governing capital raises for both public and private markets, ensuring that small businesses are not disproportionately affected by SEC regulations.
Additionally, the legislation aims to expand investment opportunities for retail investors by adjusting the criteria for who qualifies as an accredited investor. This includes provisions for 403(b) retirement plans, allowing nonprofit employees access to a broader range of investment options.
The act also emphasizes market integrity and transparency, proposing improvements to the clarity and accessibility of financial information to empower everyday investors. Furthermore, it seeks to hold the SEC accountable by increasing oversight and requiring the agency to perform thorough cost-benefit analyses for rulemaking.
For those interested in the specifics of the legislation, the full text of the Empowering Main Street in America Act is available for review.
