House Passes Expanding Access to Capital Act
H.R. 2799 builds on the bipartisan JOBS Act by cutting red tape for investors, job creators, and entrepreneurs trying to access our capital markets
Washington,
March 8, 2024 -
Today, the U.S. House of Representatives passed Chairman Patrick McHenry’s (NC-10) H.R. 2799, the Expanding Access to Capital Act. H.R. 2799 will facilitate capital formation by strengthening our public markets, helping small businesses and entrepreneurs, and creating new opportunities for all investors.
“Across the country, entrepreneurs with a new idea, or seeking to grow their business, are struggling to access affordable capital,” said Chairman McHenry. “The Expanding Access to Capital Act addresses this and more by alleviating the unique challenges faced by job creators and their investors who live outside major financial hubs. This legislation builds on the success of the bipartisan JOBS Act of 2012 and will benefit Americans from all walks of life—whether they’re saving for retirement or launching a startup. I’m proud House Republicans advanced H.R. 2799 to provide more people with the opportunity to achieve their American dream.”
Republican amendments to the Expanding Access to Capital Act adopted with bipartisan support include:
- Rep. Lawler's amendment to H.R. 2799 clarifies the definition of "general solicitation" and "angel investor" for purposes of the federal securities laws to ensure that startups can discuss their products and business plans at certain events, known as "demo days."
- Rep. Huizenga's amendment to H.R. 2799 directs the Securities and Exchange Commission to promulgate rules with respect to the electronic delivery of certain required disclosures to investors.
- Rep. Lucas's amendment to H.R. 2799 amends Federal securities laws to allow 403(b) plans to invest in collective investment trusts (CITs) and insurance contracts that currently may be invested in by comparable retirement plans, such as 401(k)s.
- Rep. Wagner's amendment to H.R. 2799 allows a closed-end investment company, an entity that invests in securities using money raised in its initial public offering, to invest its assets in securities issued by private funds.
Watch Chairman McHenry’s remarks in support of the Expanding Access to Capital Act here.
Read full bill text here.
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