PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

H.R. 1645: The Fostering Innovation Act of 2017

By at 10 October, 2017, 9:13 am

UPDATE: On October 11, the House Financial Services Committee approved H.R. 1645 by a vote of 46-14

The Honorable Kyrsten Sinema

U.S. House of Representatives

Washington, D.C.  20515

 

Dear Congresswoman Sinema:

The Small Business & Entrepreneurship Council (SBE Council) strongly supports The Fostering Innovation Act, H.R. 1645, which sensibly extends an exemption allowed for in the JOBS Act to growing companies whose business models require more regulatory flexibility. H.R. 1645 will help drive investment and innovation by providing America’s most promising and cutting-edge startups with red-tape relief.

H.R. 1645 would extend the JOBS Act’s SOX 404(b) exemption for an additional five years for former emerging growth companies (EGCs) that maintain a public float below $700 million and average annual revenues below $50 million.  The five-year extension would allow growing companies to direct their precious capital toward R&D, productivity, and market success rather than the one-size-fits-all regulatory burdens associated with costly 404(b) compliance.

This sensible bill builds on the success of the JOBS Act and recognizes that critical sectors of our economy, like biotech, remain pre-revenue even after the five-year EGC period. H.R. 1645 is an important legislative step that would add to the House’s bipartisan support of bills that foster small business capital formation.

SBE Council urges a yes vote on H.R. 1645, The Fostering Innovation Act, and notes that the legislation passed the House by unanimous consent in the previous Congress. Thank you, in advance, for your support of America’s entrepreneurs and small businesses.

Sincerely,

Karen Kerrigan, President & CEO

cc: House Financial Services Committee Members

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