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Wagner Legislation Helps Save Small Businesses $84 Million

January 15, 2016

For Immediate Release

Contact: Meghan Burris | (202) 225-1621

WASHINGTON, D.C. – Last month, Congresswoman Ann Wagner (R-MO-02) secured the inclusion of The Small Company Simple Registration Act of 2015 within the FAST Act highway funding bill. The legislation would require the Securities Exchange Commission (SEC) to streamline the registration process for a small business to file for an initial public offering (IPO).

Yesterday, the SEC announced that through the adoption of Wagner’s legislation, small businesses would save $84 million annually and more than 70,000 personnel hours in filing paperwork with the Commission.

“I am thrilled that the SEC has adopted this new law to help small businesses, which create almost seven out of every 10 new jobs in the United States, grow and remain competitive in the marketplace,” said Congresswoman Wagner. “Saving companies $84 million and 70,000 hours of work are real figures that will provide invaluable opportunities for growth. As Americans worry about a stagnant economy and fewer jobs, I am pleased we are providing real, meaningful solutions to help our small businesses.”

Background:

By amending the SEC’s Form S-1 registration statement, which is the basic registration form for new securities offerings, small businesses will no longer need to submit paperwork for each subsequent filing. This practice of “forward incorporation by reference” will lower compliance costs and allow eligible companies to direct resources toward business growth.

The figures for savings are based on Wagner’s Form S-1 provision in combination with a Form F-1 provision, which can be found on page 7 here: https://www.sec.gov/rules/interim/2016/33-10003.pdf