PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

JOBS Act 3.0 is a Powerful Package for Entrepreneurs and Small Businesses

By at 17 July, 2018, 10:46 am

SBE Council Urges All U.S. House Members to Vote for the Bipartisan Package of Capital Access Bills

UPDATE:  On July 17, the U.S. House passed JOBS Act 3.0 by a vote of 406-4.  

FOR IMMEDIATE RELEASE

Washington, D.C. –  The Small Business & Entrepreneurship Council (SBE Council) voiced its strong support for the JOBS and Investor Confidence Act of 2018 (JOBS Act 3.0), a package of bipartisan bills that will improve the competitiveness of U.S. capital markets and directly help entrepreneurs and small businesses access the capital they need to start businesses, scale their firms and more effectively compete and expand in the growing economy.

House Financial Services Chairman Jeb Hensarling (R-TX) and Ranking Member Maxine Waters (D-CA) announced an agreement on the bipartisan JOBS Act 3.0 package on July 16, and it is anticipated that the legislation will be voted on by the U.S. House of Representatives on July 17. According to SBE Council president & CEO Karen Kerrigan, JOBS Act 3.0 comes at a critical time, as small businesses are seeing opportunities to expand in the growing economy and new business formation should be surging, but access to capital remains a challenge for many.

“Capital is the fuel that drives entrepreneurship and sustainable economic growth. Small businesses and startups need a continuous flow of capital to launch, compete and grow, and JOBS Act 3.0 addresses an array of regulatory barriers and costs – from launching a firm to exit – that impede opportunity and growth. We applaud the resolve of Chairman Hensarling, the support of Ranking Member Waters, and the collaborative bipartisan work of all Financial Services Committee members for their ongoing efforts to see that entrepreneurs and small businesses have the capital they need to succeed.”

In a July 16 letter to all U.S. House members, SBE Council’s Kerrigan listed the key bipartisan bills that the organization has continuously supported – some over several sessions of Congress – as well as reforms that have now been put into legislative form as part of JOBS Act 3.0.  From clarifying regulations to make sure that startups can connect with investors at “demo days” and networking events; to establishing “venture exchanges,” which would provide a tailored trading platform for small issuers and emerging growth companies (EGCs); to extending existing regulatory relief to EGCs so these firms can use their capital for investment, growth and hiring rather than excessive compliance costs, JOBS Act 3.0 focuses on key pain points in the regulatory process, and provides new solutions and directs research so that our capital markets are the most modern and efficient for entrepreneurs and investors alike.

“We are hopeful that the momentum from this very important House effort carriers over to the Senate, and we urge Senators who are currently working on a similar legislative package to emulate JOBS Act 3.0, as each and every bill embedded in the legislation is strongly bipartisan.  All Senators I talk to say they care about access to capital for entrepreneurs and small businesses, and JOBS Act 3.0 is their opportunity to put meaningful action behind those words,” added Kerrigan.

Over the past several months SBE Council has testified before the U.S. House and U.S. Senate on capital formation and capital access issues.  See Kerrigan’s testimony before the House Financial Services Committee (June 20, 2018) on “Empowering a Pro-Growth Economy” here. See SBE Council chief economist Ray Keating’s testimony before the Senate Banking Committee (June 26, 2018) on “Legislative Proposals to Increase Access to Capital” here.

CONTACT:  Karen Kerrigan, kkerrigan@sbecouncil.org

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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