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Accelerating Access to Capital Act of 2016

Floor Speech

Date: Sept. 8, 2016
Location: Washington, DC
Issues: Business and Consumers Finance and Banking

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Mr. HILL. Mr. Chair, today I rise in support of H.R. 2357, the Accelerating-Access to Capital Act, which continues to build on the successes of the JOBS Act to stimulate capital formation for small businesses to help grow the economy and create good-paying jobs.

Last week, I visited the Venture Center in Little Rock, Arkansas, with my good friend Mrs. Wagner, the lead sponsor of this bill.

The Venture Center has been working with the public financial services IT company, Fidelity Information Systems (FIS) to launch the VC FinTech Accelerator, a program that will bring innovators and entrepreneurs from across the world to Little Rock.

I had the pleasure of attending their Demo Day last month, where FIS and the Governor of Arkansas announced a two-year partnership with the program.

This exciting program has only been active for a short time, but has already proven its ability to assist in our efforts to grow new technology jobs across the region.

These start-ups, however, often face significant and costly hurdles to obtain funding in the capital markets that is necessary to continue to grow or go public, as the cost of securities regulation disproportionally falls on small companies.

H.R. 2357 helps reduce some of this regulatory burden by making it easier for small companies to register with the Securities and Exchange Commission and creates a cost-effective way for small companies to raise capital through ``micro-offerings,'' so long as the sale meets certain criteria.

It also prevents the SEC's costly and complex proposed Regulation D rules from taking effect, which are inconsistent with the JOBS Act and Congress' intent to make it easier for small businesses to raise capital.

We need regulation in our capital markets, but we need smart regulation that does not unduly burden startups across the nation, who are at the forefront of innovation and job creation.

I thank my colleagues on the Committee--Mrs. Wagner, Mr. Emmer, and Capital Markets Subcommittee Chairman Garrett--for their work on this thoughtful legislation, and I urge my colleagues to support.

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