Senator Scott Leads Effort to Increase Access to Capital, Create Investment Opportunities

WASHINGTON - U.S. Senator Tim Scott (R-S.C.), the top Republican on the U.S. Senate Committee on Banking, Housing, and Urban Affairs, is leading legislation to revitalize the businesses within our communities and open up our capital markets to all Americans. Senator Scott's Empowering Main Street in America Act will boost avenues for capital formation that create jobs and generate economic growth.

Senate Banking Committee members, including Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.), joined Senator Scott on the legislation. Senator Jerry Moran (R-Kan.) is also a co-sponsor of the bill.

"Our capital markets system is the envy of the world and has helped many Americans build wealth and save for their futures. But unfortunately for individuals in communities like the one I grew up in, investing in a local venture or raising capital to grow a business seems out of reach. We need to change that - and this comprehensive legislation will create economic opportunity and provide more Americans with the resources necessary to achieve financial security for their families and realize their version of the American Dream, while ensuring small business owners can access capital to grow and innovate,"said Senator Scott.

At yesterday's Punchbowl News event, Senator Scott highlighted how the legislation will improve access to capital for entrepreneurs across the country, tailor regulations for small and newly public companies looking to grow and expand their operations, and create new avenues for hardworking Americans to invest in their community.

Click here to watch the full discussion.

Senator Scott's legislation, in part, is the result of feedback from his from his February 2024 roundtable with Black investors and business founders discussing ways to improve minority communities' access to capital. Here's what the roundtable participants had to say on the bill:

"I thank Senator Tim Scott (R-SC) for his leadership in introducing the Empowering Main Street in America Act (EMSAA), which will significantly improve access to capital for all entrepreneurs and investors. I had the good fortune to participate in a roundtable that Senator Scott hosted in February with Black founders and investors, and I am very pleased to see many of the insights raised at that event reflected in the legislation. I launched RareBreed in response to the lack of access to capital for founders of color and founders outside the major investment hubs of Silicon Valley, New York, and Boston. Current rules price out many accredited investors, especially those of color, from participating in investment funds. This limits capital to drive innovation, economic growth, and job creation, and restricts capital invested in founders of color. We know this because research has shown that Black-led funds are four times as likely to invest in a Black-led company. The EMSAA will provide accredited investors of color more opportunities to participate in venture capital at lower minimums, helping to reduce risk, better diversify investments, and create wealth in communities of color. As someone who has spent my entire career in venture capital as an advocate for reducing barriers and expanding participation, I applaud this legislation and look forward to supporting its passage any way I can,"said McKeever "Mac" Conwell, Managing Partner, RareBreed Ventures.

"Entrepreneurs don't need to be in Silicon Valley or Wall Street to deserve access to capital. To truly foster innovation and growth, we must meet entrepreneurs where they are-whether in rural communities, urban centers, or underserved areas. The Empowering Main Street in America Act will help ensure entrepreneurs, regardless of location, have the financial resources they need to launch and grow their business, driving local economies and building stronger communities nationwide,"said Herbert Drayton III, Managing Partner, HI Mark Capital.

"This legislative solution tears down barriers and fuels economic growth from the ground up. It's about ensuring that every American has the opportunity to build a business, invest, and achieve financial security. The message from our roundtable was clear: strengthen our capital markets, foster entrepreneurship, make financial literacy a priority, and create pathways to prosperity for all,"said Ryan Frazier, Managing Partner and CEO, Frazier Global.

For a section-by-section on the bill, click here.

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