Congresswoman Ileana Ros-Lehtinen is pleased with the passage of legislation in the U.S. House of Representatives that will allow small businesses to raise more public capital so they can expand and hire extra workers. The bill was approved by the House today, Wednesday November 2nd.
H.R. 1070, the "Small Company Capital Formation Act of 2011" will raise the amount of money that a business can receive in a Regulation A public offering from $5 million to $50 million, the first increase in 20 years. Regulation A was designed to provide regulatory relief for small businesses that sell shares of their company stock to increase capital. This legislation increases tenfold the amount that these small firms can raise providing the necessary tools to further hiring and development of the business. This bill is supported by the New York Stock Exchange, NASDAQ, US Chamber of Commerce and others.
Said Ros-Lehtinen, "Passage of this bill provides small businesses with the option of raising more capital should they decide to provide a public offering, enabling them to expand and increase hiring of workers. The current limit of $5 million dates back to 1992 so it is high time we increased this threshold and give small businesses the options they need to grow and prosper."