The Securities and Exchange Commission's Small Business Capital Formation Advisory Committee will convene on Tuesday, Feb. 24, 2026, at 10 a.m. ET at SEC headquarters in Washington, D.C., to continue examining regulatory frameworks that affect small business access to capital.
The meeting will focus on two key areas: ongoing discussions about regulatory frameworks for finders and initial exploration of the private secondary market. These topics represent critical components of the broader policy discussion surrounding small business capital formation in the current regulatory environment.
The Small Business Capital Formation Advisory Committee serves as a key advisory body to the SEC on matters affecting small and emerging companies' ability to raise capital. The committee's work has become increasingly important as regulators seek to balance investor protection with the need to facilitate capital formation for smaller enterprises.
The finder regulatory framework discussion continues the committee's examination of intermediaries who assist in connecting issuers with potential investors. Finders typically operate in a space between traditional investment advisers and broker-dealers, helping facilitate introductions and transactions without necessarily providing ongoing advisory services. The regulatory treatment of these intermediaries has been an ongoing area of focus for the SEC as it seeks to clarify rules while ensuring appropriate investor protections remain in place.
The committee's exploration of the private secondary market represents a new area of focus. Private secondary markets allow investors to trade shares in private companies before those companies go public or are acquired. These markets have grown in importance as companies stay private longer and traditional exit strategies have evolved. The regulatory framework governing these markets affects both issuers and investors, with implications for liquidity, valuation, and disclosure requirements.
The February meeting builds on previous committee discussions and recommendations regarding small business capital formation. The advisory committee has historically examined various aspects of the regulatory framework that affect small companies, including Regulation D private placement rules, Regulation A+ offerings, and crowdfunding regulations under Regulation CF.
Small business capital formation has been a priority area for the SEC under multiple administrations, with the agency seeking to reduce regulatory burdens while maintaining appropriate investor protections. The committee's work informs the SEC's policy development process and helps identify areas where regulatory changes might benefit small businesses without compromising investor protection.
The timing of this meeting reflects the ongoing evolution of capital markets and the need for regulatory frameworks to adapt to changing market conditions. As technology continues to reshape how capital formation occurs, particularly in private markets, regulatory bodies must consider how existing rules apply to new business models and market structures.
The committee's examination of finder regulations addresses longstanding questions about the regulatory status of individuals and entities that facilitate introductions between issuers and investors. Clear regulatory guidance in this area could help reduce compliance uncertainty for both finders and the companies they assist, potentially improving access to capital for small businesses.
Similarly, the private secondary market discussion comes at a time when these markets are playing an increasingly important role in providing liquidity for employees and early investors in private companies. As companies remain private for longer periods, secondary markets have become critical components of the overall capital formation ecosystem.
The public nature of the meeting reflects the SEC's commitment to transparency in its policy development process. Interested parties, including small business advocates, capital market participants, and investor protection groups, will have the opportunity to observe the committee's deliberations and provide input on the issues under consideration.
The meeting agenda and specific discussion topics will likely be detailed in advance of the February 24 session. The committee's recommendations and observations from this meeting will inform ongoing SEC policy discussions and potentially influence future rulemaking initiatives affecting small business capital formation.
This meeting continues the committee's important work in examining how regulatory frameworks can better serve small businesses while maintaining appropriate investor protections. The outcomes of these discussions may ultimately influence SEC policy decisions that affect millions of small businesses and their ability to access the capital needed for growth and expansion.