From July 26, 2022 post.
Today, the U.S. House of Representatives passed Rep. Cindy Axne’s (IA-03) bipartisan Expanding Access to Capital for Rural Job Creators Act to support rural entrepreneurs and communities. The Axne-led bill would ensure rural entrepreneurs and small business owners have a seat at the table as federal policymakers consider new rules that govern investment and capital.
“I have heard from rural business owners from across Iowa’s Third Congressional District about the unique challenges they face when it comes to obtaining the support they need to grow their businesses and create good paying jobs,” said Rep. Axne. “As a small business owner, I know how difficult it can be to access the capital you need to succeed, and that doesn’t just hurt rural entrepreneurs. It hurts our communities and economies as well.”
The economic development and prosperity of Iowa’s rural communities relies on the success of entrepreneurs and small businesses. Yet rural entrepreneurs and small business owners often lack the access to the capital they need to succeed. Based on Federal Reserve data from before the pandemic, rural small businesses are less likely to grow than their urban counterparts and nearly half of rural small businesses lack sufficient financing, despite the fact that more than 70% of rural small businesses are a low credit risk. That same survey found that only 35% of rural small businesses expected to increase employment in the next year, compared with 51% of urban small businesses. This restricts growth in rural areas and forces young people to move to urban areas to obtain good-paying jobs.
The Office of the Advocate for Small Business Capital Formation at the Securities and Exchange Commission (SEC) was established to promote the interests of small businesses, with an initial focus on supporting women and minority-owned businesses as well as those affected by natural disasters. The Advocate works to represent the interests of small businesses at the SEC, provides an annual report on the problems rural entrepreneurs face in accessing capital, and recommends policy changes to help small businesses. Rep. Axne’s legislation would expand the focus areas of the Advocate to include rural-area small businesses. This added focus will help Congress and federal regulators support rural small businesses and economic growth in rural America.
The Expanding Access to Capital for Rural Job Creators Act is a part of Rep. Axne’s Rural Prosperity Agenda. Her agenda is made up of a package of bipartisan legislation that she supports that will ensure Iowans and all rural communities receive the investments they need to prosper.
Original source can be found here
