Jefferson Reporter

U.S. Senators Katie Britt and Tim Scott, along with several Republican colleagues, have introduced legislation aimed at revitalizing small businesses and expanding access to capital markets for Americans. The Empowering Main Street in America Act seeks to boost capital formation, create jobs, and stimulate economic growth.

Senator Britt's contributions include the Small Entity Update Act and the bipartisan Retirement Fairness for Charities and Educational Institutions Act. The legislation is supported by Senators Mike Crapo, Mike Rounds, Thom Tillis, John Kennedy, Bill Hagerty, Cynthia Lummis, Kevin Cramer, Steve Daines, and Jerry Moran.

“We must ensure the American Dream is accessible in every corner of our nation," said Senator Britt. "I’m proud to join Senator Tim Scott in introducing the Empowering Main Street in America Act."

Ranking Member Scott added: “Our capital markets system is envy of the world... We need to change that – and this comprehensive legislation will create economic opportunity.”

The Empowering Main Street in America Act aims to streamline access to funding for small businesses and entrepreneurs while enhancing investment opportunities for all Americans. It intends to return the Securities and Exchange Commission (SEC) to its primary focus on fueling U.S. capital markets rather than imposing new regulatory hurdles.

Small businesses account for 66% of employment growth over the past 25 years but often cite access to capital as a major barrier. The act proposes modernizing rules governing capital raises for public and private markets and ensuring that SEC regulations do not disproportionately impact small businesses.

The legislation also seeks to improve access to capital in rural areas and expand opportunities for women, veterans, minorities, and other underrepresented groups at various stages of business growth.

For retail investors, the act aims to responsibly expand who can qualify as an accredited investor. It includes provisions from Senator Britt’s Retirement Fairness for Charities and Educational Institutions Act which would enhance investment options for 403(b) retirement plan participants.

To foster investor confidence in market integrity, fairness, and transparency, the act focuses on improving readability of financial statements like 10-K forms. It also requires the SEC to disclose costs associated with going public for small- and medium-sized businesses.

Finally, the act calls for increased oversight of the SEC by mandating semi-annual testimony from the SEC Chair before Congress and requiring thorough cost-benefit analysis of rulemaking activities.

The full text of the bill can be found here.

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