WASHINGTON — The U.S. Senate has passed bipartisan legislation that would expand the federal government’s focus on capital-access challenges facing small businesses in rural communities.
The Expanding Access to Capital for Rural Job Creators Act, sponsored by Sen. John Kennedy, R-La., would amend the Securities Exchange Act of 1934 to add rural-area small businesses to the responsibilities of the Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation.
Under the legislation, the office would identify problems rural small businesses encounter in securing capital and include those businesses in its outreach and reporting activities. The information could provide Congress with additional data when considering legislation related to small-business financing.
“Rural small businesses are the backbone of many communities across America, but too many face challenges accessing capital. I’m glad the Senate passed our bill to make sure Congress understands those challenges and help rural job creators grow their businesses, create jobs and serve their communities,” Kennedy said.
The legislation is cosponsored by Sens. Shelley Moore Capito, R-W.Va.; Gary Peters, D-Mich.; Raphael Warnock, D-Ga.; Tina Smith, D-Minn.; and Pete Ricketts, R-Neb.
A House version, H.R. 1190, sponsored by Rep. Troy Downing, R-Mont., passed the House in June 2025. The House measure similarly amends the Securities Exchange Act to specifically include rural-area small businesses in the small-business advocate office’s work.
“Rural small businesses are essential to communities across Montana, but too many still face unnecessary barriers when trying to access capital,” Downing said. “I’m proud of our legislation, which will help make sure rural businesses are no longer overlooked when Congress considers how to expand access to capital and support job creation.”
The legislation has been introduced in several previous sessions of Congress. Kennedy sponsored a Senate version in the 117th Congress and again in the 118th Congress. The Senate passed the measure in 2023 during the 118th Congress.
The current Senate measure, S. 577, was introduced in February 2025. Its text would add rural-area small businesses to provisions governing the SEC small-business advocate’s activities under the Securities Exchange Act.