Congressman Mike Fitzpatrick (PA-8) Tuesday re-introduced the Fostering Innovation Act [HR 2629] which seeks to reduce regulatory burdens on small public companies.
"I re-introduced the Fostering Innovation Act because we need to reduce the costly regulations holding back small businesses and start up's from growing," said Fitzpatrick, "The reforms passed through a subcommittee last year; it's time to move it forward."
"Large, established public companies have a different set of financial considerations than smaller start up's," said Fitzpatrick, "It is burdensome and incredibly costly for start up's to comply with rules that do not necessary apply to the size of their company."
Currently, small public businesses- characterized as non-accelerated filers- are capped with a public float of no more than $75 million. As a result, small businesses with a public float of more than $75 million are subjected to multiple regulatory burdens.
The Fostering Innovation Act will amend the filing status classifications in the U.S. Securities and Exchange Commission (SEC) Rule 12b-2 to allow companies with public floats below $250 million or revenues below $100 million to qualify as non-accelerated filers.
"Small businesses are the key to economic growth and prosperity. We need to continue to recognize the importance of small businesses. The Fostering Innovation Act is a perfect example of a common sense solution that gives lawmakers the opportunity to remove unnecessary regulations and road blocks that prevent growth and economic certainty.
"Small businesses create 2 out of every 3 new American jobs each year. In enacting the Fostering Innovation Act we can allow government to play the proper oversight role while allowing start up's to grow," continued Fitzpatrick.
The Fostering Innovation Act has been referred to the Committee on Financial Services.
Watch Congressman Fitzpatrick's statement on HR 2629 at a Financial Services Committee hearing 7/10/13: http://bit.ly/1dj7Rwq