H.R. 7977 would require the Office of the Advocate for Small Business Capital Formation within the Securities and Exchange Commission (SEC) to create educational resources and host events for underrepresented, rural, and disaster-affected small businesses. The bill also would require the office to meet annually with state securities commissions to discuss ways to assist small businesses and small business investors. In 2022, the SEC allocated $4 million to the office to support nine employees.
Using information about costs at the SEC, CBO estimates that implementing H.R. 7977 would cost $2 million over the 2023-2027 period. That amount would support one additional employee at a cost of $290,000 annually as well as travel and event costs. Because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2023-2027 period would be negligible, assuming appropriation actions consistent with that authority.
If the SEC increased fees to offset the costs associated with implementing the bill, H.R. 7977 would increase the cost of an existing mandate on private entities required to pay those fees. CBO estimates that the incremental cost of the mandate would be below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($184 million in 2022, adjusted annually for inflation).
