The Securities and Exchange Commission (SEC) is soliciting new members of the Small Business Capital Formation Advisory Committee (SBCFAC).
The Committee was created by the Small Business Advocate Act of 2016, signed into law by President Obama. The goal is to receive input and recommendations from the small business community, which is frequently overlooked by policymakers. At times, SEC rules have impeded sector growth by focusing on large, public firms.
SEC Chairman Paul S. Atkins said the Committee serves an important function of advising the Commission on achieving its mission.
“I am grateful to the committee for elevating the voices of America’s entrepreneurs. I look forward to welcoming new members and continuing to work with current members to improve pathways for small businesses to obtain the capital that they need to grow their companies in both the private and public markets.”
The SEC highlighted the policies that the SBCFAC tackles:
- Capital raising by emerging, privately held small businesses and publicly traded companies with less than $250 million in public market capitalization;
- Trading in the securities of emerging companies and smaller public companies; and
- Public reporting and corporate governance requirements of emerging companies and smaller public companies.
While the SBCFAC provides input on important issues that impact smaller firms, the Commission has a legacy of ignoring many recommendations. Still, the current Commission is more inclined to support small businesses as well as smaller investors.
Recent recommendations include boosting the requirement of reviewed financials under Reg CF to $350,000 from the current $124,000. The SBCFAC also advised the Commission to raise the Reg A funding cap to $100 million from the current $75 million, and to provide federal preemption from state regulation for secondary sales of securities initially sold pursuant to Tier 2 of Reg A.
Interested individuals should email a letter of interest to smallbusiness@sec.gov, including relevant information about their experience. The submission deadline is Feb. 20, 2026.