Republicans on the House Financial Services Committee, led by top member Rep. Patrick McHenry (R-NC), released their capital-building agenda.
The program aims to strengthen public markets, help small businesses and entrepreneurs, and increase opportunities for all investors.
On April 5, McHenry released a Republican staff report highlighting how the bipartisan Jumpstart Our Business Startups (JOBS) Act of 2012 helped spur capital formation and job creation. He also moderated a Republican roundtable where a wide range of capital formation experts discussed the many positive impacts of the JOBS Act on small businesses and investors and considered how Congress can build on its success to stimulate job creation.
“Capital formation is key to creating long-term sustainable growth,” McHenry said. “Democrats continue to pursue policies that increase regulatory and compliance costs. These costs restrict ordinary Americans’ access to investment options, discourage start-ups from going public, and disproportionately burden small businesses and other job creators in need of capital. Building on the success of the bipartisan JOBS Act of 2012, we can tame these onerous barriers and ensure that America’s capital markets remain the envy of the world. Committee Republicans have identified common-sense, growth-friendly reforms that will strengthen public markets, help small businesses and entrepreneurs, and increase opportunities for all investors. I am proud to announce these proposals to foster capital formation as a central part of the Committee Republicans’ agenda.
To strengthen each of these three areas, Republicans have introduced several bills.
To strengthen public procurement, Republicans introduced the Continuing Startup Growth Act (HR 3448), which would expand certain exemptions and reduce disclosure requirements for companies that were emerging growth companies (EGCs) but are not yet fully mature.
To help small businesses and entrepreneurs, McHenry is sponsoring the Small Entrepreneur Empowerment and Development (SEED) Act (HR 5458), which would create a burden-free regulatory regime for small stock offerings without the threat of litigation with the SEC.
To increase opportunities for investors, committee Republicans introduced the Expanding Investor Opportunities Act (HR 4262), which would provide new investment opportunities for investors by allowing closed-end funds (CEFs) offered to the public to invest up to all of their assets in private securities.
“The bipartisan Jobs Act was signed into law in 2012, and the impact has lived up to its name – there has been an undeniable kick-start in capital formation, supporting the evolution of growth businesses in areas such as as healthcare and technology and creating important jobs.” said Jeffrey Solomon, President and CEO of Cowen. “A lot of growing companies that are now breakthrough leaders in their industries are doing so because the JOBS Act enabled them to fund their businesses and add the people and resources needed to achieve their goals. Legislative proposals led by Congressman McHenry will further refine capital formation policies and improve the framework for investors to engage with these emerging companies.
The full list of bills can be found at the House of Financial Services Republicans website.