Patrick McHenryChairman

Washington, March 6, 2024 -

Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), led debate on the House floor in support of H.R. 2799, the Expanding Access to Capital Act. H.R. 2799 builds on the successful, bipartisan JOBS Act of 2012 to facilitate capital formation by strengthening our public markets, helping small businesses and entrepreneurs, and creating new opportunities for all investors.

Watch Chairman McHenry’s remarks here or by clicking the image above.

Read Chairman McHenry’s remarks as prepared for delivery:

“Forty years ago, my dad started a lawn mowing business in Gastonia, North Carolina. 

“I’ll never forget the struggles he went through to get his small business off the ground. And I’ll never forget how much a small lawn mowing business meant to me and my family.

“While my dad’s small business didn’t change the world, it changed my world.

“Like every other entrepreneur, my dad needed access to affordable capital to scale his business. When other sources of capital dried up, he relied on a charge card, now known as a credit card, to grow his business and support his workers.

“This story isn’t unique to my family. We see this playing out across the country today. 

“Entrepreneurs with a new idea, or who are seeking to grow their business, are struggling to access affordable capital. 

“That means they are not given the same opportunity to change their lives, their families’ lives, and their community.

“This is a loss for all of us.  

“That’s where investment capital—and this bill—come in to help more entrepreneurs realize their version of the American dream. 

“Currently, the venture capital that funds startups is concentrated in traditional financial hubs, like Silicon Valley, Boston, and New York City. Those three cities account for almost three quarters of all venture funding. 

“This Congress, our Committee heard compelling testimony from folks across the ideological spectrum who urged us to make it easier for them to raise money from nontraditional sources. 

“This would allow them to not only build their funds—and deploy more capital—but also share their financial success with their community.

“H.R. 2799, the Expanding Access to Capital Act, does just that and more by alleviating the unique fundraising challenges faced by entrepreneurs—and their investors—who don’t live in Silicon Valley.

“It will also make improvements to our public markets and create new opportunities for everyday investors to save and build wealth.

“This type of capital formation is a critical ingredient for creating the long-term economic growth that has proven enduring.

“Not to mention, it has traditionally been an area where a divided Washington can find consensus. 

“A little more than a decade ago Congress came together to pass the JOBS Act, which President Obama then signed into law. 

“The bipartisan JOBS Act addressed several hurdles hindering our capital markets by right-sizing onerous regulatory barriers and providing entrepreneurs access to new levels and streams of funding.

“Recognizing the need to build on the success of the JOBS Act, the House Financial Services Committee embarked on a years-long mission to better understand the remaining headwinds hindering capital formation and legislate real, impactful solutions.

“Many of these solutions are found in the legislation we are considering today, which consists of commonsense, innovative ideas to accomplish three goals:

“First, the bill strengthens our public markets and aims to incentivize companies to go public, undoing the troubling decline of initial public offerings, or IPOs, in the United States. 

“Why is it important that we attract more companies to go public in the U.S.? 

“One: Everyday American investors—also known as retail investors—are limited to investing in publicly traded companies. More public companies here in the U.S. means more opportunities for the American retail investor to grow their savings.

“Two: Job growth. A 2021 study found that biotech startups expand their workforces by an average of 150 percent in the first three years after undertaking an IPO using the JOBS Act’s IPO on-ramp provisions.

“To make our public markets more attractive, H.R. 2799 includes provisions that right-size regulatory burdens on public companies, streamline the process of going public, and allow more companies to qualify as an emerging growth company, or EGC. 

“This is an extension of a marquis provision of the bipartisan JOBS Act that has a proven track record of success.

“Second, as I said earlier, this legislation supports small businesses and entrepreneurs, who are the true engine of our economy and account for 99.9% of U.S. businesses. Among other policies, H.R. 2799 allows small businesses to raise more money through offerings. 

“It also addresses limitations on small, emerging venture fund managers attempting to raise and deploy capital to startups and entrepreneurs in their communities.  

“Third, H.R. 2799 increases access to private markets and allows more Americans to participate in high growth investment opportunities that have been traditionally reserved for the wealthy elite. 

“Currently, these investment opportunities are reserved for those qualifying as an “accredited investor,” which dictates what a person can invest in based on their wealth or income. 

“We should all agree that wealth and income should not be a proxy for sophistication, especially if investors have expertise or experience that prepares them to invest in private offerings.

“H.R. 2799 includes provisions to expand the accredited investor definition, allowing everyday Americans to invest where they see opportunity. That means new wealth-building opportunities for American investors who have been arbitrarily sidelined for too long. 

“I’ll close with this. Capital formation should not be a partisan issue.

“This legislation builds on the success of the bipartisan JOBS Act and will benefit Americans in every single one of our districts—either by growing their retirement savings or through job creation and economic growth in their community. 

“H.R. 2799 is a compilation of several standalone bills introduced by numerous members of the Financial Services Committee. There are too many to list here but I want to recognize all Committee Republicans for their outstanding work on this legislation.

“I also want to thank Capital Markets Subcommittee Chairman Ann Wagner for her superb leadership on our capital formation agenda, as well as every Member who sponsored the stand-alone bills that make up the provisions of this package. 

“I urge all of my colleagues to join us in supporting savers, entrepreneurs, and job creators to give them the chance to achieve their American dream.” 

###