PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

H.R. 477: Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2017

By at 10 October, 2017, 9:06 am

UPDATE:  On October 11, 2017 the House Financial Services Committee approved H.R. 477 by a vote of 37-23 

The Honorable Bill Huizenga

United States House of Representatives

Washington, D.C. 20515

 

Dear Congressman Huizenga:

The Small Business & Entrepreneurship Council (SBE Council) and our nationwide membership of small business owners and entrepreneurs strongly support the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2017 (H.R. 477), which would reduce the regulatory costs associated with the sale and purchase of small, privately held companies

This important piece of legislation would clarify, simplify, and reduce regulatory costs associated with these transactions.  Current law forces broker dealers to register with the Security and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and one or more states at substantial costs. The resulting higher transaction costs naturally serve as an impediment for many entrepreneurs who want or need to sell their business.

This legislation would remove a regulatory burden faced by many small business owners and entrepreneurs by exempting from registration brokers performing services associated with the sale of these small, private firms. Indeed, it’s also worth noting that this legislation unanimously passed the U.S. House of Representatives in the previous Congress. It deserves the same bipartisan support in the 115th Congress.

Thank you for your leadership, and please let SBE Council know how we can help you advance H.R. 477 into law.

Sincerely,

Karen Kerrigan, President & CEO

cc: Members of the House Financial Services Committee

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