Connecting Small Businesses with Capital Act
Bill: H.R.9450 | Sponsor: Rep. Flood, Mike (R-NE)
Policy area: Commerce

Summary:
Connecting Small Businesses with Capital Act
This bill requires the Small Business Administration to publish resources about the assistance available to small businesses for raising capital from investors through crowdfunding and other limited offerings of securities.

To require the Administrator of the Small Business Administration to 
  develop and disseminate resources on Regulation CF and Rule 504 of 
                 Regulation D, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Connecting Small Businesses with 
Capital Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Jumpstart Our Business Startups Act of 2012 (Public 
        Law 112-106) was a law that expanded opportunity and access to 
        capital for entrepreneurs.
            (2) As the rules of the Jumpstart Our Business Startups Act 
        of 2012 have taken time to be finalized, participation by small 
        business concerns in part 227 of title 17, Code of Federal 
        Regulations (commonly known as ``Regulation CF'') and Rule 504 
        of Regulation D (section 230.504 of title 17, Code of Federal 
        Regulations) is still maturing.
            (3) The Small Business Administration serves as a resource 
        for thousands of small business concerns and entrepreneurs 
        across the United States seeking financing, aid, counsel, and 
        assistance in starting or growing their business.

SEC. 3. RESOURCES ON REGULATION CF AND RULE 504 OF REGULATION D.

    (a) In General.--The Administrator of the Small Business 
Administration, in coordination with the Office of Advocacy of the 
Administration and the Office of the Advocate for Small Business 
Capital Formation of the Securities Exchange Commission, shall develop 
and disseminate, and make publicly available on a website of the 
Administration, resources related to--
            (1) part 227 of title 17, Code of Federal Regulations 
        (commonly known as ``Regulation CF'') implementing title III of 
        the Jumpstart Our Business Startups Act of 2012 (Public Law 
        112-106) (commonly known as the ``CROWDFUND Act''); and
            (2) Rule 504 of Regulation D (section 230.504 of title 17, 
        Code of Federal Regulations).
    (b) Content.--The resources described in subsection (a) should 
include the following:
            (1) A description of Regulation CF and Rule 504 of 
        Regulation D.
            (2) An explanation of how a small business concern (as 
        defined in section 3 of the Small Business Act (15 U.S.C. 632)) 
        may be affected by Regulation CF and Rule 504 of Regulation D.
            (3) How Regulation CF and Rule 504 of Regulation D may be 
        helpful in assisting small business concerns with raising 
        capital from investors.
            (4) Provide points of contact to the Office of the Advocate 
        for Small Business Capital Formation of the Securities Exchange 
        Commission to a small business concern.
    (c) Updates.--Not less frequently than once a year, the 
Administrator of the Small Business Administration, in coordination 
with the Office of Advocacy of the Administration and the Office of the 
Advocate for Small Business Capital Formation of the Securities 
Exchange Commission, shall update the resources described in subsection 
(a) in accordance with any modifications made to Regulation CF and Rule 
504 of Regulation D.
    (d) Resource Partners.--The Administrator of the Small Business 
Administration shall disseminate the resources described in subsection 
(a) to--
            (1) small business development centers (as defined in 
        section 3 of the Small Business Act (15 U.S.C. 632));
            (2) women's business centers (described under section 29 of 
        such Act (15 U.S.C. 656));
            (3) chapters of the Service Corps of Retired Executives 
        (established under section 8(b)(1)(B) of such Act (15 U.S.C. 
        637(b)(1)(B))); and
            (4) Veteran Business Outreach Centers (described under 
        section 32 of such Act (15 U.S.C. 657b)).
    (e) Report.--Not later than 6 months after the date of the 
enactment of this Act the Administrator of the Small Business 
Administration shall submit to Congress a report on compliance with the 
requirements of this Act.
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