Today, Congressman Patrick McHenry (NC-10) applauded House passage of H.R. 3606, the Jumpstart Our Business Startups (JOBS) Act. The package of legislation enjoyed broad bipartisan support, passing by a vote of 390 to 23.
The JOBS Act is a collection of commonsense, bipartisan provisions designed to ignite small business creation and encourage capital formation through the removal and modernization of regulatory barriers that are holding back entrepreneurs and preventing small businesses from expanding. This bipartisan legislation has received support from the President and now awaits action in the Senate.
"The JOBS Act gives small businesses the tools they need to expand and create jobs," McHenry stated. "It's good to see the President get behind our efforts to revive the economy and I'm hopeful that he can push the Senate to act. Reducing red tape and helping entrepreneurs is more important than partisan politics."
Small businesses and entrepreneurs are the backbone of the US economy, generating 60 percent of all new jobs in this country. Three years into our economic recovery, America's labor and capital markets continue to face unprecedented challenges. Entrepreneurship is at a 17 year low and new-business creation has dropped 23 percent since 2007. With unemployment over 8 percent for the past 36 months, the need for regulatory reform and increased access to capital for small businesses is urgent.
The Entrepreneur Access to Capital Act (H.R. 2930), which was introduced by Congressman Patrick McHenry (R-NC), is one of the six bills included in the JOBS Act. This legislation is designed to reduce regulatory burdens and allow entrepreneurs greater access to capital from a large pool of small investors.
"Crowdfunding is a key component of the JOBS Act," McHenry continued. "Economists predict the legislation will lead to a ten percent increase in new business startups, helping to create at least 170,000 jobs in the next five years. This bill is critical in getting our economy back on the right track."
H.R. 2930 ensures that our small businesses are not left behind. This important legislation provides a crowdfunding exemption to SEC registration requirements for firms raising up to $2 million, with individual investments limited to $10,000 or 10 percent of an investor's income. The legislation also erases limits on the number of investors that can participate in crowdfunding, extending investment opportunities to everyday investors that are currently not an option under SEC regulation.