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House Passes Bipartisan Bills to Help Companies Attract Investors and Create Jobs

Washington, Nov 1 -

The House today approved two bipartisan bills designed to help companies attract investments so they can grow and create jobs.

“These bipartisan bills will help build a healthier, more robust economy that offers growth opportunities for all,” said Financial Services Committee Chairman Jeb Hensarling (R-TX).

The Fair Investment Opportunities for Professional Experts Act, sponsored by Rep. David Schweikert (R-AZ), amends the statutory definition of accredited investor so those who do not have a high income or high net worth could invest in promising companies.  This change will provide more Americans with greater investment opportunities and enable the businesses they invest in to create more jobs.

“The expansion of the accredited investor definition will enhance the ability of many companies, particularly small and emerging companies, to raise capital and grow by increasing the pool of potential investors,” said Rep. Bill Huizenga (R-MI), the Chairman of the Subcommittee on Capital Markets, Securities and Investment.

The bill passed the House by voice vote.

The House also passed the Encouraging Public Offerings Act, sponsored by Reps. Ted Budd (R-NC) and Gregory Meeks (D-NY).  Under the bill, all securities issuers making an Initial Public Offering (IPO) would be allowed to communicate with potential investors before the offering and file draft registration statements with the Securities and Exchange Commission.  IPOs are effective tools for businesses to access capital and expand, thereby creating jobs.

“The financial markets connect money to ideas, money needed to develop those ideas into products and services that we all use. Our country has the same number of public companies today as in the 1980s, when the economy was much smaller.  There are a number of reasons for that, but one of them is that the process of going public has become more and more difficult.  Our bill will make significant changes to the securities laws to reduce the risk that companies face when they go public, and ensure that the everyday investor has access to the opportunities that help Americans who save see their money grow,” said Rep. Budd.  

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