Keating Testifies at “JOBS Act at Four” Congressional Hearing: Progress, Opportunity and Improvements

By SBE Council at 14 April, 2016, 8:30 am

FOR IMMEDIATE RELEASE

SBE Council’s Keating Reviews the JOBS Act at Four Years and What’s Needed to Help Entrepreneurs Access Capital

Washington, D.C. – At a U.S. House hearing today examining the state of capital formation for small businesses, Small Business & Entrepreneurship Council (SBE Council) Chief Economist Raymond Keating will testify that better economic conditions and healing in the capital markets has eased capital access, but many entrepreneurs still struggle with barriers that impede their potential and growth.

The House Financial Services Committee, Subcommittee on Capital Markets and Government Sponsored Enterprises, is hosting the hearing: “The JOBS Act at Four: Examining Its Impact and Proposals to Further Enhance Capital Formation,” which will review how the Jumpstart Our Businesses Startup (JOBS) Act signed by President Barack Obama on April 5, 2012, has affected capital access for entrepreneurs and small businesses. (The hearing can be viewed live here.)

SBE Council played a key role in helping to educate and advocate for the JOBS Act, most notably the provision that made equity and debt-based crowdfunding legal. Three of SBE Council’s members developed the framework for this game-changing measure to help entrepreneurs access investment capital. Several parts of the JOBS Act have been fully implemented, and Title III of the law – allowing everyone to invest in a startup or small business – takes effect on May 16, 2016.

At the hearing, committee members will also examine four legislative proposals to both amend the JOBS Act and further enhance capital formation for small companies and their investors. The bills, supported by SBE Council, include:

H.R. 4850, the “Micro Offering Safe Harbor Act” (SBE Council support letter.)

H.R. 4852, the “Private Placement Improvement Act of 2016” (SBE Council support letter.)

H.R. 4855, the ‘Fix Crowdfunding Act” (SBE Council support letter.)

H.R. 4854, the “Supporting America’s Innovators Act of 2016”

In his written testimony, Keating reviews each measure and their positive attributes. In his written testimony Keating said that the four pieces of legislation will build upon the JOBS Act by making additional, common sense regulatory and compliance reforms that will provide entrepreneurs more options for raising capital.

On May 16, SBE Council will co-host a Crowdfunding Showcase and Celebration “Demo Day” on Capitol Hill with Crowdfund Capital Advisors and CFIRA to commemorate the day Title III crowdfunding goes live and to show lawmakers the innovative technologies that have developed to ensure the formation of an orderly, transparent and efficient market.

SBE Council is a nonprofit, nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. SBE Council focuses on strengthening the ecosystem related to policy, educational and training content, access to capital and economic opportunity. For nearly twenty-four years, SBE Council has helped to advance policies and a broad range of initiatives for small businesses and entrepreneurs both in the U.S. and across the world. For more information visit: www.sbecouncil.org. Twitter @SBECouncil

Contact: Raymond Keating, rkeating@sbecouncil.org

Karen Kerrigan, kkerrigan@sbecouncil.org

703-242-5840

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