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Obama Signs Law to Help Small Businesses

The law creates a new SEC office to give entrepreneurs the boost they need.
David N. Feldman is a partner at Duane Morris LLP, where he concentrates his practice on corporate and securities law and mergers and acquisitions, as well as general representation of public and private companies, entrepreneurs, investors, and private equity and venture capital firms. Mr. Feldman also advises small businesses with regard to alternatives to traditional financing through initial public offerings. His popular blog at www.DavidFeldmanBlog.com, focusing on entrepreneurship and the regulatory environment, has been recognized by LexisNexis as a Top 25 corporate law blog, and his videos appear on his YouTube channel, The Entrepreneur’s Advocate. Mr. Feldman is a 1985 graduate of the University of Pennsylvania Law School, where he was managing editor of the student newspaper, the Penn Law Forum, and a graduate of the Wharton School of the University of Pennsylvania. He has served as chair of the board of Wharton’s global alumni association.
David N. Feldman is a partner at Duane Morris LLP, where he concentrates his practice on corporate and securities law and mergers and acquisitions, as well as general representation of public and private companies, entrepreneurs, investors, and private equity and venture capital firms. Mr. Feldman also advises small businesses with regard to alternatives to traditional financing through initial public offerings. His popular blog at www.DavidFeldmanBlog.com, focusing on entrepreneurship and the regulatory environment, has been recognized by LexisNexis as a Top 25 corporate law blog, and his videos appear on his YouTube channel, The Entrepreneur’s Advocate. Mr. Feldman is a 1985 graduate of the University of Pennsylvania Law School, where he was managing editor of the student newspaper, the Penn Law Forum, and a graduate of the Wharton School of the University of Pennsylvania. He has served as chair of the board of Wharton’s global alumni association.

As expected, in one of his final acts in office a few weeks ago, Pres. Obama signed the SEC Small Business Advocate Act of 2016 into law. This bill had pretty wide bipartisan support in Congress. Like most good ideas, it’s pretty simple: It sets up an Office of the Advocate for Small Business Capital Formation, as well as a Small Business Capital Formation Advisory Committee within the SEC.

The Advocate’s job will include assisting small businesses with problems they have with the SEC or other regulators, identify problems they have with securing capital, analyze proposed rules and their impact on small businesses, and organize the annual SEC small business conference at which your humble blogger recently spoke. The Advisory Committee will give the SEC advice on rules, regulations and policies relating to capital raising, trading and reporting and governance requirements of small businesses.

Where this office will set up within the SEC is not clear. There already exists a pretty robust Office of Small Business Policy led by the very capable Sebastian Gomez Abero, and they currently organize the annual conference. I assume, even though this got passed a few weeks ago, that action to implement this will await the new SEC Chair. But let’s stay tuned…