House Passes Wagner’s Bill to Strengthen American Small Businesses and Create More Jobs

Washington, D.C.  – Congresswoman Ann Wagner (R-MO), Chair of the Subcommittee on Capital Markets, released the following statement after the House passed her legislation, H.R. 2792, the Small Entity Update Act:

“The Small Entity Update Act plays a vital role in expanding investment opportunities for all Americans, improving access to capital for small businesses, and strengthening our public markets.  Small businesses, which make up 99% of all enterprises and employ almost half of the U.S. workforce, are disproportionately affected by overly burdensome regulatory barriers. These companies represent the engine of our economy and are far too often subject to one-size-fits-all regulations that limit job creation and economic growth.

“My bill will require the SEC to re-evaluate their small business definition every five years.  Small entities simply can’t afford the number of lawyers and regulatory experts that large, multinational firms can to comply with every regulation while still being able to afford the cost of doing business.  The government cannot, and should not, treat a small startup in Ballwin, MO with seven employees as it would a Fortune 500 company.  The Small Entity Update Act will lead to a more targeted regulatory framework for these entities and help make the American dream a reality for all entrepreneurs.”

Background
H.R. 2792, the Small Entity Update Act
This legislation would direct the SEC to assess regulatory costs of compliance for small and growing businesses, ensuring that regulations placed on these businesses are not overly burdensome. Specifically, the bill would direct the Securities and Exchange Commission (SEC) to conduct a study, followed by a rulemaking consistent with the results of such study every five years, including defining the term “small entity” under the Regulatory Flexibility Act.