Remarks before the Small Business Capital Formation Advisory Committee

Good morning. I’m pleased to speak with the Small Business Capital Formation Advisory Committee. As is customary, I’d like to note that my views are my own as Chair of the Securities and Exchange Commission, and I am not speaking on behalf of my fellow Commissioners or the staff.

I am pleased to welcome and thank the Committee’s newly selected leadership team for taking on their roles—Chair Erica Duignan, Vice Chair Sue Washer, Secretary Jasmin Sethi, and Assistant Secretary Davyeon Ross.

I am pleased that the Committee will have the opportunity to hear from our Director of the Division of Corporation Finance, Erik Gerding. Erik will share with you some of the wide-ranging work our agency does on behalf of small businesses.

Small businesses make up such an important part of our economy. It’s often through a small business that those who have a dream or want to take a risk can make a go for it. That’s why it is critical that the capital markets help facilitate capital formation for businesses, small and large—and that our agency helps small businesses navigate the capital raising process.

We offer pathways for small businesses to help navigate this process, such as through various exemptions in our registration process like in Regulation D, Regulation A, and Regulation Crowdfunding. We also offer resources to small businesses, such as through our dedicated staff with the Division’s Office of Small Business Policy as well as with the SEC’s Office of the Advocate for Small Business Capital Formation. I am sure you know these teams well.

We always benefit, though, from your insights from the front lines on what more we can do, from resources or rulemaking to beyond.

We also benefit from your insight such as through today’s panel discussions.

I understand your morning session is taking up an important topic with regard to the limited partners who invest in smaller venture funds. I look forward to hearing what comes from this discussion.

Next, your afternoon session discusses alternative funding options for small businesses. Given how important non-equity funding can be to small businesses, I look forward to your perspective on these topics.

I also want to thank today’s guest speakers, from both the venture capital field and the U.S. Department of the Treasury, for joining us. I look forward to today’s discussion.