Central ND News

Senator Cramer introduces legislation to increase access to capital for small businesses, entrepreneurs

WASHINGTON – One of the primary challenges facing small businesses in the United States is access to capital. A recent report published by Goldman Sachs revealed over three-quarters of small business owners are concerned about accessing capital.

U.S. Senator Kevin Cramer (R-ND) introduced the Unlocking Capital for Small Businesses Act on Tuesday to provide a simpler regulatory regime for private placement brokers and finders, exempting them from U.S. Securities and Exchange Commission registration required under the Securities Exchange Act.

Further, the bill will create a safe harbor for finders. Scaled-back regulations for private placement brokers will better facilitate capital formation for small businesses without access to institutional investors.

“Small businesses are the heartbeat of North Dakota’s communities and our nation’s economy, and the regulatory environment should be primed to accelerate their growth,” said Cramer. “Eliminating the overbearing regulations faced by finders and removing hurdles for entrepreneurs who rely on capital will allow them to start or grow their businesses. The Unlocking Capital for Small Business Act is a commonsense, long-term investment in Main Street America.”

The Unlocking Capital for Small Businesses Act is supported by Americans for Prosperity, National Small Business Association, and the Small Business and Entrepreneurship Council.

“In an economy where the impact of burdensome regulations and sticky inflation is being felt by everyone, the Unlocking Capital for Small Businesses Act represents an opportunity to tackle many of the challenges our small businesses and entrepreneurs face. Americans for Prosperity strongly supports this legislation and applauds Senator Cramer for his leadership in tackling a very critical issue facing American small businesses and entrepreneurs alike,” said Brent Gardner, Chief Government Affairs Officer at Americans for Prosperity.

“Capital access is critical to the growth and survival of America’s small businesses, and we are grateful that Congress is taking action to help small businesses scale more easily and effectively. Small businesses too often find themselves caught in a divide: they’re becoming too large for family and friends to provide meaningful capital, yet too small for institutional investors to support. Senator Cramer’s Unlocking Capital for Small Business Act will go a long way to freeing up a vital new stream of capital for these small businesses caught in the middle,” said Todd McCracken, President and CEO of National Small Business Association.

“Access to startup and growth capital is critical to small businesses and the vibrancy of the U.S. economy. Therefore, unlocking latent and underutilized capital would boost the competitiveness and viability of all types of small firms that have the potential to scale and bring their innovative products and services to the broader marketplace. The ‘Unlocking Capital for Small Businesses Act’ makes common sense reforms that allow finders to work more effectively with entrepreneurs and business owners to raise capital. This has become more critical in the current environment, where the cost and availability of capital have become an emergent pain point for many businesses across sectors. Without capital, small businesses cannot innovate, grow, or create jobs, which means local economies suffer, and the competitiveness of our national economy falters. Advancing this legislation now would be a proactive capital formation strategy to address the growing challenge that entrepreneurs are facing in accessing capital. SBE Council applauds Senator Cramer for his leadership in introducing this timely legislation, and for his enduring support of our nation’s entrepreneurs and small businesses,” said Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council.