House Advances Downing Bill that Expands Montana Rural Business Access to Capital Markets

WASHINGTON — The House of Representatives passed legislation Monday that would require federal regulators to prioritize rural small businesses when addressing capital access challenges, marking a significant victory for Montana’s rural business community.

H.R. 1190, the Expanding Access to Capital for Rural Job Creators Act, passed by voice vote and represents Montana Congressman Troy Downing’s first sponsored bill to clear the House. The legislation, which has garnered bipartisan support with five cosponsors from both parties, now moves to the Senate for consideration.

The bill would amend Section 4(j) of the Securities Exchange Act of 1934 by adding “rural-area small businesses” to two specific provisions that currently prioritize minority-owned, women-owned, and disaster-stricken small businesses for capital access assistance. The changes are targeted and precise, essentially adding rural businesses to an existing list within the SEC’s Office of the Advocate for Small Business Capital Formation.

“Rural small businesses are the economic lifeblood of Central and Eastern Montana,” said Congressman Downing. “H.R. 1190 ensures that rural Main Street receives the long-overdue attention it deserves from the SEC’s Office of the Advocate for Small Business Capital Formation to allow these businesses to flourish.”

The SEC’s Office of the Advocate for Small Business Capital Formation is tasked with identifying problems that small businesses face when securing access to capital and submitting annual reports to Congress on these challenges.

Currently, the office focuses on minority-owned, women-owned, and disaster-stricken small businesses. Downing’s legislation would expand that mandate to include rural small businesses, which advocates say face unique challenges in accessing capital markets.

The bill addresses a gap in federal oversight of rural business capital formation that has long concerned lawmakers from agricultural and rural states. The bipartisan nature of the legislation reflects widespread recognition of rural capital access challenges, with cosponsors including Republicans Zachary Nunn of Iowa and Pete Sessions of Texas, along with Democrats Janelle Bynum of Oregon, Chris Pappas of New Hampshire, and Eugene Vindman of Virginia. Rural businesses often struggle with limited access to traditional banking services, venture capital, and other funding sources available to urban counterparts.

Downing, who represents Montana’s 2nd Congressional District covering much of the state’s rural areas, has made supporting rural economic development a key priority since taking office.

The congressman took to the House floor to advocate for the legislation, emphasizing its importance for rural communities across the country.

“I’m proud to see my first bill pass the House and look forward to getting this legislation through the Senate and onto the President’s desk,” Downing said.

The legislation comes as rural communities nationwide continue to face economic challenges, including business closures, population decline, and limited access to capital for new ventures and expansions.

If enacted, the bill would formalize rural small businesses as a priority area for the SEC’s small business advocacy efforts, potentially leading to targeted recommendations and policy changes to address rural capital access barriers.

The timing of the House passage positions the bill for potential Senate consideration as lawmakers continue to focus on rural economic development initiatives. The Senate has not yet announced when it will take up the measure.