McHenry, Emmer Introduce Bill to Help Job Creators Access Capital Through Micro-offerings
Washington,
October 4, 2021 -
The top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), and the top Republican on the Subcommittee on Oversight and Investigations, Tom Emmer (MN-06), introduced H.R. 5458, the Small Entrepreneurs’ Empowerment and Development (SEED) Act of 2021. The SEED Act will create a new, permanent micro-offering exemption to help small businesses access capital to create jobs and rebuild from the impact of COVID-19.
“A thriving Main Street is critical to our economic recovery,” said Congressman McHenry. “Our bill will not only help our small businesses rebuild after bearing the brunt of COVID-19, but also create more jobs in their communities. This simple and streamlined micro-offering exemption will reduce barriers to capital formation for these entrepreneurs, many of which need different financing options than what is provided by traditional banks. Small businesses are the cornerstone of our communities, and we should provide them with every opportunity to succeed.”
“Small business owners and entrepreneurs are the backbone of our society, and responsible for more than half of new jobs created each year,” said Congressman Emmer. “Unfortunately, they’ve suffered due to lockdowns and forced closures during the COVID-19 pandemic. However, even before the public health crisis, government regulations tied their hands, making it difficult to startup or expand. The SEED Act will create a micro-offering exemption to ensure small businesses and startups have more ways to access capital which is so vital to their success, getting them one step closer to achieving the American Dream.”
Background:
- Deriving from the micro-lending model, the SEED Act will create a new, permanent micro-offering exemption free of mandated disclosures or offering filings to allow broader access to capital for emerging entrepreneurs and small businesses.
- Job creators will be permitted to raise up to $250,000 in a year without these regulatory burdens.
- The bill would be particularly beneficial for women and minority entrepreneurs, who disproportionately face barriers to accessing traditional financing options.
- The bill maintains important investor protections, including the antifraud provisions of the federal securities laws and disqualification of bad actors from using the exemption.
- The exemption under H.R. 5458 will be especially helpful for those small businesses rebuilding following the coronavirus and any future shortage in bank lending.
###
|
