PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocate Praises House Passage of Bill to Ease Capital Access for Small Businesses

By at 9 November, 2017, 12:55 pm

FOR IMMEDIATE RELEASE

“Micro Offering Safe Harbor Act” Scales and Aligns SEC Rules with the Needs of Entrepreneurs

Washington, D.C. – Today the U.S. House passed the “Micro Offering Safe Harbor Act” (H.R. 2201), a bill that makes smart changes to Securities and Exchange Commission (SEC) rules and would provide entrepreneurs a needed and practical option for raising capital.  Rep. Tom Emmer (R-Minn.) has been the driving force behind this important piece of legislation, which the Small Business & Entrepreneurship Council (SBE Council) has strongly endorsed and has testified in support of before the House Financial Services Committee.

“When it comes to raising capital, the existing regulatory system is onerous, complex and outdated. Even for small securities offerings, compliance and navigating the rules are very expensive. The Micro Offering Safe Harbor Act is a sensible solution that makes smart changes to existing law and would provide an effective option for small businesses that need to raise capital. Access to capital remains a challenge for many startup entrepreneurs and small businesses that wish to grow. Thoughtful and commonsense reforms like the Micro Offering Safe Harbor Act are needed to unlock capital and provide entrepreneurs with routes to financing for their innovations and growth-oriented businesses, ” said SBE Council president & CEO Karen Kerrigan.

H.R. 2201 would exempt from registration requirements with the Securities and Exchange Commission (SEC) offerings made only to the entrepreneur’s friends and family, to less than 35 purchasers, and when $500,000 or less is raised. The offering would be exempt from state registration and qualification rules, thus reducing costs and complexity.

“The U.S. has much work to do when it comes to fostering capital formation and encouraging investment and entrepreneurship. We thank Congressman Emmer for his leadership as the Micro Offering Safe Harbor Act would, if enacted, help many entrepreneurs successfully start and grow their businesses,” added Kerrigan.

CONTACT:
Karen Kerrigan, kkerrigan@sbecouncil.org, 703-242-5840

Raymond Keating, Chief Economist, rkeating@sbecouncil.org, 631-909-1122

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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