Yesterday, Rep. Ralph Hall (TX-04) voted to pass The Jumpstart Our Business Startups Act (JOBS Act), a bipartisan jobs package made up of six bills that will spur job creation and energize the economy by creating a more favorable environment for small businesses, startups, and entrepreneurs. The bill passed, 390-23.
"Small businesses play a significant role not only in job creation - generating over 60% of new jobs in this country according to the Small Business Administration - but also in driving American innovation," said Hall. "It only makes sense that we do all we can to provide small businesses with the opportunity to succeed."
Hall continued, "Unfortunately, overreaching government regulations are hindering small businesses and entrepreneurs to start up and grow. The World Bank found the U.S. dropped in ranking to thirteenth for 'ease of starting a business,' according to the annual 'Doing Business' report. This ranking is not consistent with the ideas of opportunity and innovation that make America great.
"By removing unnecessary regulations and opening access to capital, entrepreneurs can expand their businesses, hire new workers, and invest in the future. I will continue to support legislation that promotes job creation and economic growth, and am pleased the JOBS Act moves us in the right direction."
Bills that make up the JOBS Act:
H.R. 3606, the Reopening American Capital Markets to Emerging Growth Companies Act of 2011. This bill makes it easier for small and medium-size companies to access the capital markets by reducing the cost of going public.
H.R. 2940, the Access to Capital for Job Creators Act. This bill removes the regulatory ban that prevents small, privately held companies from using advertisements to solicit accredited investors across the country.
H.R. 2930, the Entrepreneur Access to Capital Act. This bill removes SEC restrictions that prevent "crowdfunding" so entrepreneurs can raise equity capital from a large pool of small investors who may or may not be considered "accredited" by the SEC.
H.R. 1070, the Small Company Capital Formation Act. This bill makes it easier for small businesses to go public by increasing the offering threshold for companies exempted from SEC registration from $5 million to $50 million.
H.R. 2167, the Private Company Flexibility and Growth Act. This bill removes an impediment to capital formation for small companies by raising the shareholder threshold for mandatory registration with the SEC from 500 to 1,000 shareholders.
H.R. 4088, the Capital Expansion Act. This bill raises the threshold for mandatory registration under the Securities Exchange Act of 1934 from 500 shareholders to 2,000 shareholders for all banks and bank holding companies and raises the shareholder deregistration threshold from 300 shareholders to 1,200 shareholders.