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Mr. HURT of Virginia. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 2064, the Improving Access to Capital for Emerging Growth Companies Act.
I would like to thank the ranking member for her support of this good legislation. I would also like to thank Representative Fincher and Representative Delaney for their efforts to successfully move this legislation through the Financial Services Committee on a unanimous, bipartisan vote.
Mr. Speaker, a key component of the JOBS Act was the so-called IPO--the initial public offering--on-ramp provisions of title I, which created a new classification of public company known as an emerging growth company.
Emerging growth company status allows smaller companies that are accessing capital in the public markets to utilize streamlined registration and reporting requirements for up to 5 years after their initial public offerings.
In doing so, emerging growth companies are able to spend fewer resources in complying with costly regulations that are designed for the largest public companies.
Just over 3 years since the JOBS Act's enactment, we continue to witness the successful results of its implementation. In 2014, emerging growth companies represented 86 percent of the 288 initial public offerings, allowing those companies to raise over $42 billion in capital.
That capital represents real dollars that can be used by these companies to invest in research and development, in innovative products, and, most importantly, in new jobs in their communities.
While these numbers are encouraging, more can still be done to incentivize companies to access capital in our public markets.
H.R. 2064 will decrease the required time for a confidential registration statement to be on file with the SEC before an emerging growth company may conduct a road show from 21 days to 15 and will further streamline disclosure requirements for emerging growth companies. These targeted changes to the Federal securities laws will make IPOs even more appealing to emerging growth companies.
One witness at a previous Capital Markets and Government Sponsored Enterprises Subcommittee hearing commented:
We support this bill as it creates generally greater optionality for issuers without altering the ultimate level of required disclosure to investors. This bill is in keeping with the philosophy that underlies title I of the JOBS Act and the creation of safe harbors, such as ``testing the waters'' and ``confidential filings.'' We believe, for example, that providing issuers with the ability to file without full financial statements will cut issuer time-to-market, which is beneficial in mitigating market risk and speeding access to capital.
I ask that my colleagues join me in supporting H.R. 2064.
Mr. Speaker, I reserve the balance of my time.
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Mr. HURT of Virginia. Mr. Speaker, I want to thank the ranking member again and those on her side of the aisle for looking for ways we can work together for job creation and streamlining of the regulatory structure as it relates to our financial markets.
I represent Virginia's Fifth District, and over the last 10, 20 years, we have seen a tremendous amount of high unemployment. I would suggest to you that legislation like the legislation that Representative Fincher and Representative Delaney have put forward today is the kind of legislation that will lead to more private capital on Main Street all across the Fifth District of Virginia and all across America. I would suggest to you that that is why this bill deserves the full support from the House of Representatives today.
I yield back the balance of my time.
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