Overview

Title

To amend the Securities Exchange Act of 1934 to expand access to capital for rural-area small businesses, and for other purposes.

ELI5 AI

This bill wants to help small businesses in the countryside get money more easily, so they can grow and create jobs, just like businesses owned by women already do. It changes a big old rule to make this happen.

Summary AI

H. R. 1190 aims to change the Securities Exchange Act of 1934 to help small businesses in rural areas get more funding. The bill adds rural-area small businesses to categories that already include women-owned small businesses, so they can have better access to capital. By making these changes, the bill seeks to spur job creation in rural regions.

Published

2025-02-11
Congress: 119
Session: 1
Chamber: HOUSE
Status: Introduced in House
Date: 2025-02-11
Package ID: BILLS-119hr1190ih

Bill Statistics

Size

Sections:
2
Words:
257
Pages:
2
Sentences:
7

Language

Nouns: 78
Verbs: 15
Adjectives: 16
Adverbs: 0
Numbers: 12
Entities: 25

Complexity

Average Token Length:
3.79
Average Sentence Length:
36.71
Token Entropy:
4.32
Readability (ARI):
17.64

AnalysisAI

General Summary of the Bill

The bill titled "H. R. 1190" aims to amend the Securities Exchange Act of 1934. It seeks to make it easier for small businesses in rural areas to get access to capital by explicitly including them in certain provisions of the Act. This inclusion positions rural-area small businesses alongside women-owned businesses, acknowledging the unique challenges they may face in accessing financial resources. The bill is officially referred to as the "Expanding Access to Capital for Rural Job Creators Act."

Summary of Significant Issues

One of the main issues highlighted by the bill is the recognition of a gap in financial support for rural-area small businesses. These businesses often lack the same level of financial access typically available in more urban or suburban areas. By amending the Securities Exchange Act to include them, the bill seeks to address this imbalance.

However, while it aims to support rural businesses, the bill might inadvertently raise concerns about whether other potentially underserved groups are being left out. There is potential for questions regarding the exclusion of other small business sectors that might also need increased access to financial resources.

Additionally, there is an underlying financial consideration for institutions tasked with providing this access. They may face challenges in adapting to changes that broaden their scope of support to include rural businesses more explicitly.

Impact on the Public

Overall, the bill could have a broad positive impact by potentially stimulating rural economies. By allowing more small businesses in these areas better access to capital, it could foster job creation and economic development. If successful, these areas might see an influx of investment and business growth, contributing to a balanced national economic landscape.

From another perspective, by potentially setting a precedent, the amendment could encourage further legislative efforts to address financial support gaps in other underserved business sectors. Enhancing access to capital for these businesses could lead to innovative ways to include multiple categories of small enterprises that face financial challenges.

Impact on Specific Stakeholders

Rural-area Small Businesses: The immediate beneficiaries of this bill are small businesses in rural areas, which often face unique challenges such as limited access to financial institutions and a smaller customer base. By gaining easier access to capital, these businesses could expand, innovate, and potentially hire more employees, contributing positively to their local economies.

Financial Institutions: The impact on banks and other financial entities could be mixed. While providing more services to these rural-based businesses might open new revenue streams for them, it might also require them to adjust their current models. They may need to increase their efforts and resources toward understanding and catering to the specific needs of rural business enterprises.

Policy Makers and Advocates: For legislators and advocacy groups focusing on economic growth in rural areas, this bill represents a step forward. It highlights the importance of inclusive funding opportunities for diverse sectors. However, it might also spark debate regarding the prioritization of resources, leadership intentions, and whether similar initiatives should be extended to other sectors.

Overall, the bill seeks to bridge a crucial gap in financial support for rural-area small businesses, offering an opportunity for growth and development in these communities. While it opens up possible economic and social benefits, it also presents questions about the equitable distribution of financial resources across all small business sectors.

Issues

  • The amendment specifically adds rural-area small businesses to sections of the Securities Exchange Act of 1934. This could significantly impact access to capital for these businesses, potentially addressing a gap in financial support for rural economies (Section 2).

  • The bill may raise questions about whether similar support should be extended to other small business sectors not specifically mentioned, which could be seen as excluding other potentially underserved groups (Section 2).

  • There might be concerns about the potential financial burden or implications for financial institutions and whether they have the capacity or willingness to adapt to changes in supporting rural-area small businesses (Section 2).

  • The bill's focus on rural-area small businesses alongside women-owned businesses might attract political debate about the prioritization of rural business needs over urban or other business categories (Section 2).

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the bill states that the official title of the Act is “Expanding Access to Capital for Rural Job Creators Act”.

2. Access to capital for rural-area small businesses Read Opens in new tab

Summary AI

The proposed amendments to the Securities Exchange Act of 1934 will make it easier for rural-area small businesses to access capital by including them alongside women-owned small businesses in certain provisions of the Act.