Bill Overview
Title: Promoting Opportunities for Non-Traditional Capital Formation Act
Description: This bill expands the functions of the Securities and Exchange Commission's Office of the Advocate for Small Business Capital Formation. Specifically, the office must (1) provide educational resources and host events to promote capital-raising options for underrepresented small businesses and businesses in rural areas, and (2) meet annually with representatives of state securities commissions to discuss opportunities for collaboration and coordination.
Sponsors: Rep. Waters, Maxine [D-CA-43]
Target Audience
Population: Underrepresented small business owners and businesses in rural areas
Estimated Size: 3500000
- Small businesses and businesses in rural areas often face challenges in accessing capital due to lack of resources or representation in traditional capital markets.
- Underrepresented small businesses include those owned by minorities, women, and other marginalized groups who have been historically neglected by conventional funding sources.
- Rural businesses may struggle with access to necessary financial networks and may benefit greatly from enhanced capital-raising resources.
- The bill aims to improve capital access and education, which can lead to increased business opportunities and economic development in these sectors.
Reasoning
- The target population includes a significant number of underrepresented small business owners and rural businesses, which are often starved of both capital and financial education resources.
- With a budget of $3,500,000 for the first year and $12,650,000 over ten years, the policy can reach a decent portion of its target audience, providing needed resources and support.
- Small businesses, especially those owned by minorities and women, face pervasive challenges in capital acquisition due to systemic biases and geography.
- Rural businesses operate in less populated regions, limiting their access to financial networks, which this policy aims to address.
- The estimated population to be served is approximately 3,500,000, which requires careful resource allocation to maximize impact.
Simulated Interviews
Small business owner (Tuscaloosa, Alabama)
Age: 35 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I think this policy could be a game-changer for my business.
- Educational resources will help me understand capital options better.
- I hope it targets tech startups in rural areas like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Farm owner (Fresno, California)
Age: 42 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I think more access to financial resources would greatly improve my business.
- I'd like more information on how to access these resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 5 |
Consultant for small businesses (Dover, Delaware)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is likely to relieve some struggles my clients face.
- Educational events could enhance understanding and negotiation with investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Freelance artist (Rochester, New York)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I would appreciate more knowledge on accessing capital.
- This policy might help me and others like me find investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Retired entrepreneur (Mansfield, Ohio)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I see this as a positive step for new entrepreneurs.
- I hope to see mentorship programs as part of this initiative.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Nonprofit director (Flagstaff, Arizona)
Age: 48 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- The policy could seriously benefit the indigenous communities I work with.
- Rural-focused events will encourage more locals to get involved.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Retail store owner (Miami, Florida)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- I am hopeful this policy will improve my chances to secure business loans.
- Looking forward to more inclusive financial education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Restaurant owner (Portland, Oregon)
Age: 58 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- I see huge benefits if the policy includes more eco-focus and financial backing.
- Expansion plans need accessible funding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Agricultural consultant (Bismarck, North Dakota)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- More capital will help farmers implement sustainable practices.
- Excited about potential collaboration between states.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Tech entrepreneur (Columbus, Ohio)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I imagine this policy attracting more investors to tech startups.
- Access to resources can level the playing field.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $3500000 (Low: $3000000, High: $4000000)
Year 2: $3600000 (Low: $3100000, High: $4100000)
Year 3: $3700000 (Low: $3200000, High: $4200000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The costs primarily encompass administrative expansion and event execution.
- The benefits depend on the effectiveness of the educational resources and the success in reaching the target audience.
- The geographic and demographic diversity of the target audience could pose challenges in implementation.