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Schweikert Bill Enabling Small Companies To Access Capital Markets Approved By Committee

Washington, June 22, 2011 - The Financial Services Committee today approved the Small Company Capital Formation Act (H.R. 1070) introduced by Rep. David Schweikert.

The bill makes it easier for small businesses to access capital, which will permit greater investment in these companies and will allow them to grow and create new jobs.

“I am extremely pleased that the Financial Services Committee passed my Small Company Capital Formation Act. This common-sense proposal, passed with bipartisan support, reduces burdensome regulation on small business and creates more jobs. I am glad my colleagues stand with me in unwinding regulation and make our capital markets more vibrant and competitive,” said Rep. Schweikert.

The bill increases the offering threshold for companies exempted from SEC registration under Regulation A from $5 million — which was set in the early 1990s — to $50 million.  Increasing the Regulation A threshold will lower the cost of raising capital for small businesses.

“Small businesses are the engine of job growth in our country,” said Chairman Spencer Bachus.  “With this proposal, small businesses will be able to more efficiently raise funds that they can use to hire new employees.  I commend Rep. Schweikert for offering this important bill that will help small businesses across the country create jobs.”

H.R. 1070 was approved by voice vote.

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