Congressman Larry Bucshon (IN-08) released the following comment regarding the vote for the Jumpstart Our Business Startups (JOBS) Act, which passed the U.S. House by a vote of 390-23.
Congressman Bucshon (IN-08) states:
“It is encouraging to all job creators and small business owners that we were able to pass the JOBS Act with bipartisan support. This legislation will reform, streamline, and repeal regulations that are holding back small business and entrepreneurial growth.As I have toured all 18 counties in the 8th district, I have been told by numerous small business owners that their inability to access capital is preventing them from growing and expanding and limiting their ability to create jobs. I am proud to have supported the JOBS Act and I am confident that it will help small businesses and entrepreneurs thrive.”
Background:
According to Majority Leader Eric Cantor, the JOBS Act includes the follow six pro-growth measures:
The Reopening American Capital Markets to Emerging Growth Companies Act would make it easier for companies to go public by allowing them temporary relief from certain U.S. Securities and Exchange Commission (SEC) regulations.
The Access to Capital for Job Creators Act aims to help small companies raise capital by removing a SEC regulatory ban that says small businesses cannot use advertisements to attract investors.
The Entrepreneur Access to Credit Act aims to ease entrepreneurs' efforts to raise capital by eliminating SEC restriction on “crowdfunding,” an increasingly popular way for small businesses to raise money from a large pool of individual investors.
The Small Company Capital Formation Act would help small businesses go public by elevating the threshold of companies that are exempted from SEC regulation to $50 million from $5 million.
The Private Company Flexibility and Growth Act is expected to give small companies more room to grow before having to go public by expanding the shareholder limit for registration with the SEC to 1,000 from 500. The current SEC regulation asks many small companies to purposefully impede their own growth or force them to look for buyers when they start hitting up against the current regulatory roof.
The Capital Expansion Act would increase the number of shareholders allowed to invest in a community bank to 2,000 from 500, as is currently dictated by the SEC. The goal is to reduce regulation that community banks, some of the biggest lenders to smaller businesses, have to deal with allowing them to spend more time making loans.
