Providing for Consideration of H.R. Accelerating Access to Capital Act of and Providing for Consideration of H.R. Investment Advisers Modernization Act of 2016

Floor Speech

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Mr. EMMER of Minnesota. I thank the chairman.

Mr. Speaker, government doesn't create jobs; people create jobs. But with the President, Congress can create Federal policies that establish a pro-worker and pro-business environment to lift people out of poverty, to help families, and to allow Americans to realize their greatest dreams.

One problem today that is impeding job growth is the access to capital for small business. Often, American entrepreneurs can't get the money they need to start a new enterprise or to grow an existing one. In fact, small businesses still create the majority of new jobs in our country today despite the fact that far fewer small business loans are being made today than were being made prior to the 2008 recession.

Compounding this problem even further is the unfortunate reality that entrepreneurs from less affluent communities often have the greatest difficulty in securing the capital they need to make their business dreams come true. As a result, thousands of jobs and hundreds of new products are left on the drawing board as unrealized aspirations of American entrepreneurs. Thankfully, if the rule before us today is adopted, the House can consider four solutions that will address this small business access to capital problem immediately.

The Accelerating Access to Capital Act of 2016 will make it easier for businesses to raise capital. First, thanks to Congresswoman Wagner, this legislation will make it easier for small companies to comply with SEC security registration requirements by simplifying the process, by eliminating duplicative paperwork, and by, ultimately, allowing people to do their business instead of compliance.

Second, thanks to Congressman Garrett's Private Placement Improvement Act, the bill will make it easier for small businesses to raise capital under rule 506 of regulation D, ultimately leading to greater access to capital for small businesses and unleashing the full potential of title II of the JOBS Act.

Third, the Micro Offering Safe Harbor Act will make it easier for Americans to raise capital from friends and family if three simple criteria are met. These three criteria include that the investor has a substantive preexisting relationship with the owner, that there are 35 or fewer investors, and that the aggregate amount of the investment does not exceed $500,000.

Additionally, this provision would exempt such offerings from blue sky requirements, but with all Federal and State antifraud laws remaining in effect. It is important to note that this micro offering proposal does not create a new law, but, rather, simply clarifies an existing law by making an explicit safe harbor for certain private security offerings under the Securities Act of 1933.

Finally, thanks to Congressman Hurt and Congressman Vargas, the Investment Advisers Modernization Act will modernize the Investment Advisers Act by removing redundancies and making necessary enhancements to increase capital formation.

With American productivity decreasing, wages essentially stagnant, and the U.S. economy struggling to get to historically normal GDP growth levels, these proposals in the Accelerating Access to Capital Act will help jump-start our ailing economy. By providing new opportunities to make the most of capital formation vehicles that are already available or by creating new ones, these proposed reforms will enable American entrepreneurs and small businesses to access the capital they need to grow and to prosper.

I thank the Speaker of the House and the chairman of the Financial Services Committee for prioritizing the consideration of these pro- business, pro-jobs, and antipoverty bills. I encourage my colleagues in the House to support the rule. This is a tremendous opportunity for the House to support Main Street mom-and-pop stores, aspiring entrepreneurs, and established manufacturers to create jobs, wealth, and opportunity for Americans from all walks of life.

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