Patrick McHenryChairman

Washington, March 8, 2024 -

Today, the U.S. House of Representatives will consider Chairman Patrick McHenry’s (NC-10) H.R. 2799, the Expanding Access to Capital Act. H.R. 2799 builds on the success of the 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. Here’s what experts are saying about this commonsense legislation:

Charles Crain, Vice President, Domestic Policy, National Association of Manufacturers

“The JOBS Act created the ‘emerging growth company’ definition and the associated ‘IPO On-Ramp,’ which was tremendously successful in opening up the public market to small and growing businesses. The Expanding Access to Capital Act would build on the success of the JOBS Act, further enhancing capital formation for smaller manufacturers. The NAM appreciates Chairman McHenry's work to reduce regulatory burdens on small and newly public companies, increase access to capital, and ease the IPO process—meaning more capital for job creation and investment in America.”

“We, the undersigned organizations, write to you today to express our support for Representative Patrick McHenry's H.R. 2799, the Expanding Access to Capital Act, which we believe is a transformational piece of legislation that can improve the capital formation landscape in both private and public markets. We urge you to support its passage when it is considered on the House floor. Capital markets play a vital role in the U.S. economy, empowering small businesses, entrepreneurs, and startups with the critical access to capital to innovate, grow their business, and create more jobs to power the American economy. This legislation presents a unique opportunity to improve upon the successes of the JOBS Act of 2012 by reducing and eliminating additional barriers that prevent them from being in a position to be successful.”

Karen Kerrigan, President & CEO, Small Business and Entrepreneurship (SBE) Council

“H.R. 2799 is a constructive bill that adapts and modernizes policies that serve to hinder the availability and flow of capital to small businesses. The bill right-sizes compliance requirements for smaller public companies and expands Emerging Growth Companies’ benefits to other public companies to free up more capital. Moreover, H.R.2799 allows venture funds to positively leverage their work by raising money from more investors. Accredited investor rules are also modernized to tap into available capital beyond wealthy investors. The combined effect of the practical measures within H.R. 2799 means more capital for small businesses and more widely dispersed capital across the United States. U.S. policy must continue to strengthen U.S. competitiveness and investment, which means focusing on common-sense ways that private sector capital can make its way to our most innovative small businesses in every corner of the country. H.R. 2799 will help achieve that goal, and every member of the U.S. House needs to support this important piece of legislation.”

“Several of the provisions of this bill build upon the successful 2012 Jumpstart Our Business Startups (JOBS) Act, which has made it easier for businesses to raise capital at every stage of their lifecycle. In particular, the bill would permit companies to retain emerging growth company (EGC) status for a longer period and would promote research coverage of more public companies. The bill would also tailor Securities and Exchange Commission (SEC) reporting requirements to be more responsive to the needs of small businesses and update SEC registration criteria for small private fund managers. Finally, H.R. 2799 would empower more individuals to build and sustain wealth, including by allowing ‘gig’ workers to receive equity compensation and by expanding criteria to determine who qualifies as an ‘accredited investor’ under SEC rules.”

Small Business Investor Alliance

“The Small Business Investor Alliance (‘SBIA’) supports H.R. 2799, the Expanding Access to Capital Act of 2023, which would expand capital access for small business and small investment funds and create greater opportunities and growth potential for investors… SBIA is especially supportive of Section 2202 of the legislation, which contains the Small Business Investor Capital Access Act. SBIA commends Rep. Barr for introducing this legislation to tailor compliance burdens for small private funds… SBIA also commends the inclusion of bills that would expand the criteria to determine when an individual is an ‘accredited investor’ under SEC regulation… Additionally, SBIA supports of many other provisions included in the Expanding Access to Capital Act, including those that would tailor compliance and financial reporting obligations for small public companies and help connect entrepreneurs with potential investors.”

Crowdfund Capital Advisors

“We urge you and your colleagues to pass H.R. 2799, the Expanding Access to Capital Act, as amended. As explained below, we strongly support H.R. 2799 because it delivers economic output, innovation, and jobs without inhibiting regulators from promoting responsible capital formation and protecting investors in their states. Title VII (the Improving Crowdfunding Opportunities Act) is designed to fortify the crowdfunding ecosystem, enhancing the framework for capital formation while upholding stringent investor protections, thereby supporting the public securities markets and ensuring that investors have diverse avenues to secure their financial future.”

Engine

“As a non-profit technology policy, research, and advocacy organization that bridges the gap between policymakers and startups, we are writing to express our support for H.R. 2799, the Expanding Access to Capital Act. U.S. startups drive innovation and job growth, but far too often they are restrained due to challenges accessing capital needed to launch and grow, and this is especially true for startups led by underrepresented founders. More than 10 years have passed since the adoption of the Jumpstart our Business Startups (JOBS) Act. We have seen remarkable progress in our startup ecosystem, but it is time for policymakers to once again examine what is and is not working across the capital formation landscape to further grow our startup ecosystem. The Expanding Access to Capital Act would do just that, by broadening and diversifying the investor pool to unlock needed funding so that U.S. startups can thrive.”

Carta

“Carta applauds Congress’s efforts to promote capital formation to drive innovation, economic growth, job creation, and opportunity. We appreciate the continued focus to further improve access to capital and investment opportunities, particularly for women and minority entrepreneurs and investors outside of traditional funding hubs. These efforts are even more important today. H.R. 2799, the Expanding Access to Capital Act, contains a number of provisions that would help expand access to capital for entrepreneurs in emerging ecosystems and increase investment and ownership opportunities.”

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