House Passes Bipartisan “JOBS & Investor Confidence Act”
Washington,
July 17, 2018 -
WASHINGTON – In a near unanimous vote of 406-4, today the House passed the bipartisan “JOBS and Investor Confidence Act of 2018.” The bill – which is comprised of 32 individual pieces of legislation that have passed the Financial Services Committee or the House this Congress with broad bipartisan support – was the third and largest installment of “Jumpstart Our Business Startups (JOBS) Act” legislation aimed at helping small businesses, entrepreneurs and investors by reforming our capital markets.
“The JOBS and Investor Confidence Act of 2018 will help sustain 3% economic growth and ensure we are able to compete globally with countries like China. By helping entrepreneurs access the capital they need to launch their companies and to go and stay public, this bill ensures that America’s garages have fewer old cars and more new startups,” said Financial Services Committee Chairman Jeb Hensarling (R-TX). “The small businesses of today become the Amazons, Googles and Microsofts of tomorrow. Thanks to the hard work of Members on both sides of the aisle – especially Ranking Member Maxine Waters who worked so strongly and fervently on a bipartisan, cooperative basis – this bill will make a difference for economic growth for all Americans.”
The critical legislation includes provisions to: ease regulations on “angel investors” and expand the definition of “accredited investors” to make it easier for startup companies and small businesses to attract investments needed to grow and create jobs; make it easier for companies to go public by extending on-ramp exemptions for emerging growth companies (EGCs) to give them more time to financially sustain costs and requirements associated with full compliance; ease securities regulations on Initial Public Offerings (IPOs) to increase opportunities for everyday investors; and cut red tape on asset managers so that Main Street investors don’t have to shoulder the costs of burdensome, unnecessary regulations.
House Speaker Paul Ryan (R-WI) praised the legislation, saying the bill would “cut down on regulations that are holding back small businesses and start-ups. It’s the third piece in a line of critical bipartisan bills aimed at creating jobs, unlocking innovation, and driving growth. This will help us sustain the positive growth that we are already seeing. And this all gets us back to creating an environment where entrepreneurs can succeed and workers can get ahead.”
“Startups drive our nation’s economic growth by expanding the technology frontier and employing millions of workers in high-quality jobs. And Americans are inspired by stories of entrepreneurs who build an empire out of their garages. Yet too many small businesses fail to launch because of government restrictions on investment and growth,” said House Majority Leader and co-author of the original JOBS Act, Kevin McCarthy (R-CA). “Chairman Hensarling has proven time and again that he cares about crafting bipartisan solutions for entrepreneurs. His approach to build on the success of the first and second JOBS Acts has been creative and inclusive. The JOBS Act 3.0 is the latest evidence of this House’s commitment to expanding opportunity for American workers and investors.”
House Majority Whip Steve Scalise (R-LA) said passage of the bipartisan legislation would “make it even easier for people to have a piece of the American Dream.”
The legislation will now head to the Senate, where Majority Leader Mitch McConnell (R-KY) has committed to bring the bill up for a vote.
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