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

This law aims to simplify how small businesses raise capital by creating less burdensome federal registration rules for "finders" and "private placement brokers" who connect companies with investors. This change is intended to unlock more investment opportunities for small enterprises. Citizens participating in these private deals will benefit from mandatory written disclosures regarding the broker's compensation and potential conflicts of interest.
Key points
Reduced Red Tape for Intermediaries: Individuals who help small businesses find private investors (finders and brokers) will face simplified federal registration requirements, speeding up the investment process.
Mandatory Investor Transparency: Private placement brokers must clearly disclose their compensation and any financial interest they have in the company before a deal is finalized.
Federal Preemption of State Rules: States are prevented from imposing stricter registration or reporting requirements on these specific intermediaries than those set by the new federal law.
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Expired
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Additional Information
Print number: 118_S_4493
Sponsor: Sen. Cramer, Kevin [R-ND]
Process start date: 2024-06-11
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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 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4493.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-06-11.

What are the main provisions?

Key points include:

  • Reduced Red Tape for Intermediaries: Individuals who help small businesses find private investors (finders and brokers) will face simplified federal registration requirements, speeding up the investment process.
  • Mandatory Investor Transparency: Private placement brokers must clearly disclose their compensation and any financial interest they have in the company before a deal is finalized.
  • Federal Preemption of State Rules: States are prevented from imposing stricter registration or reporting requirements on these specific intermediaries than those set by the new 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 Sen. Cramer, Kevin [R-ND].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy