Sponsors (3)
The bill strengthens small-business input into SEC rulemaking—potentially lowering compliance burdens and improving predictability—while creating new agency costs, slowing rulemaking, and risking bias that could weaken investor protections.
Small-business owners will have dedicated representation in SEC rulemaking, so SEC rules are more likely to reflect small issuers' capital-formation needs and could reduce compliance burdens for smaller companies.
Improved coordination and a formal small-business voice in rule development should increase transparency and predictability in SEC rulemaking for capital-raising processes.
Embedding new offices and coordination processes at the SEC will raise administrative costs that may be covered by fees or budget reallocation, imposing costs on taxpayers and regulated firms.
Placing small-business advocacy inside rulewriting divisions could bias rulemaking toward issuer interests and weaken investor protections.
New coordination requirements across SEC divisions could slow the rulemaking process, delaying regulatory updates and implementation for market participants.
Based on analysis of 2 sections of legislative text.
Requires the SEC to create an Office of Small Business in each rulewriting division and coordinate those Offices with the Office of the Advocate for Small Business Capital Formation.
Introduced July 16, 2025 by Vicente Gonzalez · Last progress July 16, 2025
Creates an Office of Small Business inside every Securities and Exchange Commission division that writes rules, and requires those offices to coordinate with the SEC’s Office of the Advocate for Small Business Capital Formation on rulemaking and policy priorities tied to capital formation. The change is organizational and focuses on ensuring small-business impacts are considered during SEC rulewriting; it does not itself change securities rules or provide new spending.