Palmetto State News

U.S. Senator Tim Scott (R-S.C.), the leading Republican on the U.S. Senate Committee on Banking, Housing, and Urban Affairs, is spearheading new legislation aimed at revitalizing businesses within communities and broadening access to capital markets for all Americans. The Empowering Main Street in America Act is designed to enhance capital formation avenues that create jobs and stimulate economic growth.

The legislation has garnered support from several 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.). Additionally, Senator Jerry Moran (R-Kan.) is 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 a recent Punchbowl News event, Senator Scott emphasized how the legislation aims to improve access to capital for entrepreneurs nationwide, tailor regulations for small and newly public companies seeking growth, and create new investment opportunities for hardworking Americans within their communities.

Senator Scott’s initiative partly stems from feedback received during his February 2024 roundtable with Black investors and business founders discussing ways to enhance minority communities’ access to capital. Roundtable participants expressed strong support for 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, restricting 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 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 at 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 financial resources they need launch grow their business driving local economies building stronger communities nationwide,” said Herbert Drayton III Managing Partner HI Mark Capital.

“This legislative solution tears down barriers fuels economic growth from ground up It’s about ensuring every American opportunity build business invest achieve financial security message our roundtable clear strengthen our capital markets foster entrepreneurship make financial literacy priority create pathways prosperity all,” said Ryan Frazier Managing Partner CEO Frazier Global.

For more details on each section of the bill click here.

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