The Securities and Exchange Commission announced that it has released a report detailing recommendations from panel discussions on how to improve capital raising for small businesses.
The SEC summarized the policy recommendations that were made during the 42nd Annual Government-Business Forum on Small Business Capital Formation.
The event, hosted by the Office of the Advocate for Small Business Capital Formation, was held over four 90-minute virtual sessions April 24-27. It featured speakers with in-depth knowledge of the issues facing small businesses across the country. Following the discussions, participants were invited to vote on capital raising policy recommendations submitted by members of the public.
The report sent to Congress summarizes the forum proceedings, including recommendations from participants for changes to the capital raising framework and the Commission’s responses to those recommendations.
Each day focused on a different topic facing small businesses:
–Exploring the Early-Stage Landscape: Trends and Strategies in Capital Raising
–Building Entrepreneurial Ecosystems: Laying the Groundwork to Support Small Business and Their Investors
–Investing in Small Business: Successes and Challenges Facing Smaller Funds
–Accessing Public Markets: Becoming and Staying a Public Reporting Company
The SEC said that of those who registered for the event, more than one-third identified as founders, entrepreneurs, and business leaders, while another one-third identified themselves as
investors. Over 20% were individuals who own or invest in women-owned businesses, more than 25% were individuals who own or invest in minority-owned businesses, and more than 15% were individuals who own or invest in businesses located in rural areas.
In his opening remarks, SEC Chair Gary Gensler said, “As small businesses grow, they often migrate from borrowing in bank markets to capital markets. Having that breadth and depth in our markets facilitates capital formation. That’s why, consistent with our mission and Congressional mandate, we are working to make them as efficient as possible.” He added that the SEC is working on projects to increase the efficiency, integrity, and resiliency of the markets to lower costs for all businesses raising capital and increase returns for investors.
The Office of the Advocate for Small Business Capital Formation is an independent office established in January 2019 to advance the interests of small businesses within the SEC and in capital markets. It works to identify and address unique challenges faced by minority-owned, women-owned, rural, and natural disaster area small businesses and their investors.
Here is the SEC’s complete report on the Small Business Forum.
The attorneys at Hyman Cotter PC include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. Our attorneys fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. If your firm is facing an investigation from a regulatory agency, please contact Hyman Cotter PC at 312-291-4600 or through our online contact form.
