SEC Small Business Forum Focuses on Access to Capital and Reduced Regulation

In remarks before a SEC small business forum, Chair Paul Atkins and Commissioner Mark Uyeda prioritized greater capital access for early-stage entrepreneurs, support for smaller investment funds, and reducing regulatory burdens on public offerings.

Mr. Atkins highlighted the funding challenges facing startups and said the SEC is exploring regulatory changes to reduce these barriers. He warned about increasing venture capital concentration, pointing out that about 40% of venture capital funding in early 2025 went to just ten companies. He emphasized that enabling smaller investment funds to compete is essential for supporting innovative startups and expanding the "pipeline of emerging businesses." Mr. Atkins also stated that the SEC was looking to scale disclosure requirements based on a company’s size and stage of development, including potentially extending transition periods for newly public companies to encourage more small-business IPOs.

SEC Commissioner Mark Uyeda reported that easing regulatory burdens is a key priority because small businesses employ nearly half of the U.S. workforce and are vital to the economy. He noted the overlapping qualification requirements between federal and state regulators as a major barrier. Mr. Uyeda stated that companies seeking modest funding must often comply with rules across all 50 states and the District of Columbia, creating significant costs and delays. To address this issue Mr. Uyeda suggested that approval in a company’s home state could serve as the primary qualification, with other states requiring only a notice filing. He said this approach could reduce compliance burdens while still protecting investors and improving regulatory oversight.