Section 1 Short title
This Act may be cited as the “Connecting Small Businesses with Capital Act”.
Connecting Small Businesses with Capital Act
A BILL
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.
Sec. 2 Findings
Congress finds the following:
The Jumpstart Our Business Startups Act of 2012 (Public Law 112–106) was a law that expanded opportunity and access to capital for entrepreneurs.
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.
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
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—
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
Rule 504 of Regulation D (section 230.504 of title 17, Code of Federal Regulations).
Content— The resources described in subsection (a) should include the following:
A description of Regulation CF and Rule 504 of Regulation D.
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.
How Regulation CF and Rule 504 of Regulation D may be helpful in assisting small business concerns with raising capital from investors.
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.
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.
Resource partners— The Administrator of the Small Business Administration shall disseminate the resources described in subsection (a) to—
small business development centers (as defined in section 3 of the Small Business Act (15 U.S.C. 632));
women’s business centers (described under section 29 of such Act (15 U.S.C. 656));
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
Veteran Business Outreach Centers (described under section 32 of such Act (15 U.S.C. 657b)).
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.