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Easing Capital Access for Small Businesses: New Rules for Finders and Brokers.

This Act aims to simplify how small businesses raise capital by reducing regulatory burdens on intermediaries (finders and private placement brokers) who connect them with investors. It establishes federal "safe harbors," exempting these intermediaries from strict registration requirements, provided they adhere to specific transaction limits and ensure full transparency regarding their compensation and conflicts of interest. This streamlining is intended to help small companies secure funding more quickly and affordably, supporting growth and job creation.
Key points
Reduced Red Tape for Intermediaries: Finders and private placement brokers assisting small businesses in finding investors are exempt from most federal registration requirements, lowering the cost of raising capital.
Investor Protection through Disclosure: Brokers must clearly disclose in writing to investors how much they are paid for the transaction and any financial ties they have to the company seeking capital.
Limits on State Regulation: States are prohibited from imposing stricter registration, audit, or reporting requirements on these intermediaries than those set by federal law.
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Additional Information
Print number: 118_HR_2590
Sponsor: Rep. Garbarino, Andrew R. [R-NY-2]
Process start date: 2023-04-13
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Unlocking Capital for Small Businesses Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2590.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-13.

What are the main provisions?

Key points include:

  • Reduced Red Tape for Intermediaries: Finders and private placement brokers assisting small businesses in finding investors are exempt from most federal registration requirements, lowering the cost of raising capital.
  • Investor Protection through Disclosure: Brokers must clearly disclose in writing to investors how much they are paid for the transaction and any financial ties they have to the company seeking capital.
  • Limits on State Regulation: States are prohibited from imposing stricter registration, audit, or reporting requirements on these intermediaries than those set by federal law.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Garbarino, Andrew R. [R-NY-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Economy