A House-passed package of provisions aimed at removing government barriers to job creation and economic growth has gained a key ally: the President. In a rare show of bipartisanship the White House lent its support to the Jumpstart Our Business Startups Act (JOBS Act) which combines six bills previously approved in the House.
While the individuals bills contained in the package are relatively small by comparison, the Competitive Enterprise Institute estimates they could create as many at 10 million jobs when implemented together.
Congressman Jack Kingston (R-GA) voted for the package, calling it an effective measure to empower small businesses, startups and entrepreneurs.
"This package goes a long way toward creating the kind of environment we need to jumpstart our economy," Kingston said. "It gets government out of the way and removes outdated regulations that no longer work in the 21st Century. In doing so, it will help get investment off the sidelines and give business owners the capital they need to hire again."
Among the provisions of the JOBS Act are regulatory changes that would increase the number of shareholders who can invest in a company before it is required to go public, permit "crowd-funding" by which companies can raise capital from a large number of small investors, and remove a prohibition on soliciting investors.
In addition, the legislation would create a designation of "emerging growth company" which would be granted a decelerated entrance into the Security and Exchange Commission's (SEC) full fee structure and regulatory burden. It would also increase the share sales threshold at which companies must register with the SEC for the first time in 20 years and increases the number of shareholders allowed to invest in a community bank from 500 to 2,000.
Kingston is hopeful the President's support for the JOBS Act will lead to further Senate action on House-passed bills aimed at job creation and economic growth.
"To date, the House has passed 30 bipartisan jobs bills only to see the Senate refuse to act," Kingston said. "I hope this effort will break that logjam so we can come together and find more areas of common ground."