Office of the Advocate for Small Business Capital Formation

About the Office

The Office of the Advocate for Small Business Capital Formation (OASB) is an independent office that began operations in January 2019. It was established pursuant to the SEC Small Business Advocate Act of 2016 to advance the interests of small businesses and their investors at the SEC and in the capital markets. OASB advocates for small businesses and their investors by conducting outreach to solicit views on relevant capital formation issues, providing assistance to resolve significant problems, analyzing the potential small business impact of proposed regulations and rules, and recommending changes to mitigate capital formation issues and promote the interests of small businesses and their investors.

OASB is responsible for the following:

• Identifying problems that small businesses have with securing access to capital;
• Conducting outreach to small businesses and their investors to solicit views on capital formation issues;
• Assisting small businesses and their investors in resolving significant problems they may have with the SEC or with self-regulatory organizations (SROs);
• Identifying areas in which small businesses and their investors would benefit from changes in SEC regulations or SRO rules;
• Analyzing the potential impact on small businesses and their investors of proposed SEC regulations and SRO rules; and
• Proposing appropriate regulatory and legislative changes to the SEC and Congress to mitigate problems identified with small business capital formation and to promote the interests of small businesses and their investors.

Government-Business Forum on Small Business Capital Formation

OASB is also charged with planning, organizing and executing the annual Government-Business Forum on Small Business Capital Formation described in section 503 of the Small Business Investment Incentive Act of 1980. The Forum provides a platform to highlight perceived impediments to capital formation, culminating in recommendations for government and private action to improve the environment for small businesses that are consistent with other public policy goals, including investor protection. Click here for more information about the Forum.

Annual Report on Activities

OASB will prepare an annual report to Congress summarizing its activities in supporting small businesses and their investors during the immediately preceding fiscal year. The report will provide statistical information and analyses of the issues on which OASB has worked, information on steps that OASB has taken to improve small business services and the responsiveness of the SEC and SROs to such needs, and a summary of the most serious issues encountered by small businesses and their investors, including any unique issues encountered by minority-owned small businesses, women-owned small businesses, and small businesses affected by natural disasters.

Small Business Capital Formation Advisory Committee

The SEC Small Business Advocate Act established the Small Business Capital Formation Advisory Committee to provide the SEC with advice on SEC rules, regulations, and policies relating to capital formation across the spectrum of small businesses from emerging, privately-held companies to smaller public companies with less than $250,000,000 in public market capitalization; trading in the securities of such companies; and public reporting and corporate governance requirements of such companies. The Small Business Advocate serves as a member of the Committee, and OASB provides support and assistance to assist the Committee in fulfilling its statutory mission. The Committee submits recommendations to the Commission, to which the Commission must respond. Click here for more information about the Committee.