Senator Tim Scott (R-S.C.), the Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, has introduced a comprehensive bill aimed at revitalizing businesses and opening up capital markets to more Americans. The Empowering Main Street in America Act is designed to boost avenues for capital formation that create jobs and generate economic growth.
The legislation comes after feedback on the capital markets framework Scott released last fall, as well as discussions with Black investors and business founders about improving minority communities' access to capital. The bill also incorporates input from Scott's Republican colleagues on the Senate Banking Committee.
Banking Committee members supporting the legislation include Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.). Senator Jerry Moran (R-Kan.) is also a co-sponsor.
Scott emphasized the importance of making investing in local ventures or raising capital accessible to all communities. "Our capital markets system is the envy of the world and has helped many Americans build wealth and save for their futures," he said. "But unfortunately for individuals in communities like the one I grew up in, investing in a local venture or raising capital to grow a business seems out of reach."
Senator Crapo highlighted regulatory issues: "Republicans are committed to addressing and correcting the burdensome regulatory regime that limits the ability of small businesses to grow."
Senator Rounds noted that his own legislative contributions are included in Scott's bill: "The Empowering Main Street in America Act has a number of provisions that would cut burdensome red tape and encourage economic growth."
Other senators echoed these sentiments. Senator Tillis stated, "This legislative package streamlines access to capital and removes burdensome regulations that stifle growth." Senator Kennedy added, "Louisianians and all Americans deserve a level playing field when it comes to accessing capital."
Senator Hagerty criticized current administration policies: "Capital formation is a foundational element for building the American dream...the Biden-Harris Administration is actively hindering access to capital markets." Senator Lummis emphasized expanding opportunities: “We have the best capital markets in the world...we must expand and improve our system.”
Senator Britt pointed out specific benefits for small entities: “This includes my Small Entity Update Act—which would ensure small entities are not unduly impacted by burdensome SEC regulations.”
The act aims to streamline rules governing public and private market capital raises, address challenges faced by small businesses, particularly those owned by women, veterans, minorities, rural residents, and other underserved groups.
Additionally, it seeks to responsibly expand investment opportunities for retail investors by broadening who can qualify as an accredited investor. The legislation also focuses on improving market transparency by requiring clearer financial disclosures.
Lastly, increased oversight over regulators like the Securities and Exchange Commission is another key component. The act mandates semi-annual testimonies from SEC Chairs before Congress and thorough cost-benefit analyses for new rulemaking efforts.