Securities and Exchange Commission Must Act Now to Expand Access to Capital for Small Businesses by Finalizing Crowdfunding Regulations

The Securities and Exchange Commission recently indicated they are waiting on further congressional action before finalizing regulations on crowdfunding, but the SEC needs to act on this now to expand access to capital for small businesses. The Jumpstart Our Business Startups Act was signed into law more than two years ago to help address business̢??‰? lack of access to capital, yet the SEC continues to delay finalizing rules for crowdfunding that were included in the law.

Small Business Majority̢??‰?s recently-released Economic Agenda for America̢??‰?s Future points to ways Washington can act now to help small businesses access the capital they need. One key action is for the SEC to release final rules on crowdfunding that will provide small businesses more opportunities to get capital and investment in the growth of their businesses.

We know from our opinion polling that access to capital has been a persistent problem for entrepreneurs, particularly since the recession. And, while it has eased in some parts of the small business community, there are significant gaps that remain in critical areas, including in minority and rural communities and for women and veterans.

To fully realize the economic potential of America̢??‰?s primary job creators, we must guarantee more options for obtaining capital by ensuring fair and clear regulations on crowdfunding. Small businesses can̢??‰?t afford to wait for further congressional action on crowdfunding. It̢??‰?s time for the SEC to release the final rules for crowdfunding that will help entrepreneurs access the capital they need to grow and expand their businesses.