Wagner’s Bipartisan Job Growth Bill Passes House
WASHINGTON, D.C. – Today, the U.S. House of Representatives passed the Accelerating Access to Capital Act (HR 2357), sponsored by Congresswoman Ann Wagner (R-MO-02), with a 236-178 vote. The Accelerating Access to Capital Act amends the Securities Exchange Commission’s registration process for additional capital, reducing this regulatory burden on small companies and allowing them to allocate more resources toward growth and job creation.
“I am thrilled we are continuing to reduce unnecessary regulatory burdens on American companies. This legislation will allow small businesses to expand, create jobs, and better compete in the marketplace,” said Congresswoman Wagner. “I talk with small business owners across Missouri’s Second District every day, and it is clear that big government regulations continue to suffocate our businesses and families. We must provide opportunities to restore access to capital that the Obama Administration has spent years trying to block.”
Fuel Performance Solutions, a small business in St. Louis, conducted an internal study and found that instead of filling out a 100-page registration form, which takes about 4-6 weeks to complete, this legislation will allow them to fill out a 20-page form, which only takes 2 days to complete. As a result, they would incur less legal, accounting, and investment banking fees and save $225,000.
Earlier today, Congresswoman Wagner spoke on the positive impact this legislation will have on businesses across the country. Watch her floor speech here:
Congresswoman Wagner’s Floor Remarks, as prepared:
Thank you Mr. Speaker, I’m proud to sponsor the Accelerating Access to Capital Act, HR 2357, and I would like to thank my colleagues Rep. Emmer and Chairman Garrett for their legislation as well. Regulatory burden is one of the reasons why we are still in the slowest recovery of our lifetime since the financial crisis, and small businesses are finding it more and more difficult to find financing in order to grow and expand their business.
Dodd-Frank has made traditional bank lending for small businesses more scarce, and smaller companies that wish to go to the capital markets, are finding the compliance and regulatory requirements to be too extensive and costly.
This legislation builds upon other efforts by this committee to provide simplified disclosure and reduce burdens for smaller companies in order to lower the cost of raising capital.
Specifically, this would extend to smaller reporting companies the ability to utilize Form S-3, a much more simplified registration for companies that have already met prior reporting requirements with the SEC. Allowing small companies to use this form would provide significant benefits with its shorter length, allowing forward incorporation by reference, and the ability to offer securities “off the shelf,” which are all things that larger companies are currently able to enjoy.
Streamlining disclosure will lower compliance costs associated with filing redundant paperwork, which will in turn allow companies to direct more resources to growing their business.
Fuel Performance Solutions, which is a company based out of St. Louis, has spent the past 10 years working on exciting fuel products that could potentially save Americans money at the pump and reduce harmful emissions.
In order to fund this research in breakthrough technology, Fuel Performance Solutions eventually decided to register with the SEC and go public to raise more capital and expand their business.
The company conducted a study and found that instead of filling out a 100-page registration form, which takes about 4-6 weeks to complete, this legislation would have allowed them to fill out a 20-page form, which only takes 2 days to complete. As a result, they would have incurred less legal, accounting, and investment banking fees and saved close to $225,000.
Additionally, under this job growth legislation, they could have received SEC approval in days, rather than months, and thereby obtained certainty in regards to funding their business.
I am proud that the greater metropolitan St. Louis region is the fastest-growing start-up scene in the country, but we must provide opportunities for these businesses and many others to grow and thrive in the marketplace.
Extending these cost saving provisions to smaller companies that large companies are currently able to enjoy is absolutely critical and can make the difference in their ability to issue an additional offering, expand their business, and create more jobs. The Accelerating Access to Capital Act will do just that.
I urge passage of this legislation, and I yield back the balance of my time.