PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

H.R. 686: “Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act of 2015”

By at 12 February, 2015, 9:45 am

The Honorable Bill Huizenga

1217 Longworth Building

Washington, DC  20515

 

Dear Representative Huizenga:

On behalf of the 100,000 members of the Small Business & Entrepreneurship Council (SBE Council), thank you for introducing H.R. 686, the “Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2015.”

This important piece of legislation would clarify, simplify, and reduce regulatory costs associated with the sale and purchase of smaller privately held companies.  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, which are then passed on as transaction costs when small and family-owned businesses are sold from one entrepreneur to another.  These high costs are an impediment for many entrepreneurs who want or need to sell their businesses.

Your bill would remove a costly regulatory burden faced by many small business owners and entrepreneurs by exempting brokers from registration who perform services associated with the sale of these small, private firms.

SBE Council was pleased H.R. 686 passed the U.S. House with massive bipartisan support (422-0) in the last Congress, and we are hopeful the U.S. Senate will quickly act on this measure. We look forward to working with your office to ensure H.R. 686 quickly moves through both chambers and to President Obama’s desk for signature into law.

Sincerely,

Karen Kerrigan, President & Chief Executive Officer

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