Unlocking Capital for Small Businesses Act of 2024

The Unlocking Capital for Small Businesses Act of 2024 creates a federal safe harbor for private placement brokers and finders who help small businesses raise capital through private securities sales. It requires the SEC to establish uniform rules for these brokers (no stricter than those for online funding platforms) and mandates clear written disclosures about compensation, conflicts of interest, and beneficial ownership before transactions. The bill also prohibits states from imposing stricter registration, reporting, or financial requirements on these brokers than federal law allows and clarifies that contracts with them remain valid if small businesses self-certify the broker's status. This reduces regulatory barriers for small businesses seeking private investment while standardizing oversight across states.