Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2021

Floor Speech

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Mr. HILL. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise today on behalf of the committee in support of H.R. 935, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act. I particularly want to thank the bill's sponsor, the gentleman from Michigan (Mr. Huizenga), for his leadership on this issue on behalf of small businesses across our country. The importance of small businesses to our economy, our job creation, and the innovation across our Nation cannot be overstated. They are the backbone of all of our communities.

In October 2020, the SBA, the Small Business Administration, reported that there were 31.7 million small businesses in the United States. Yet, too often Democrats' heavy-handed approach to business regulation in this country can put that success at risk. A one-size-fits-all regulatory approach disproportionately burdens small enterprises. For those looking to grow through merger and acquisition, they often face additional costs, the expense of that transaction.

The committee has found that merger and acquisition brokers provide crucial services to small businesses whose owners desire to sell the business or merge with another firm. However, certain of these brokers face significant compliance costs, including SEC registration fees, which, of course, are passed on to their clients, the small businesses.

H.R. 935 helps to alleviate these costs by amending the Exchange Act to create a simplified registration system for these kinds of merger and acquisition brokers.

The Securities and Exchange Commission, the SEC, agrees with the premise of this bill. In fact, back in 2014, the SEC issued a no-action letter to exempt certain M&A brokers from registration, and that no- action letter, Madam Speaker, is relied upon today.

Without a change in law, the regulated community is left in a state of uncertainty when it comes to Federal securities laws. The gentleman from Michigan's bill will clarify, simplify, and provide much-needed certainty as to that process without compromising important investor protections.

I also remind my colleagues that this bill has passed the House in previous Congresses. Therefore, our committee urges our colleagues to support H.R.

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Mr. HILL. Madam Speaker, I yield 5 minutes to the gentleman from Michigan (Mr. Huizenga), the author of this legislation and the ranking member of our Investor Protection, Entrepreneurship, and Capital Markets Subcommittee.

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Mr. HILL. Madam Speaker, I yield an additional 30 seconds to the gentleman.

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Mr. HILL. Madam Speaker, let me conclude the discussion on H.R. 935 by thanking my friend from Michigan for his persistent leadership over many Congresses on this topic. I urge my colleagues to support him in this effort, putting it over the goal line, and getting a great result out of the Senate in the days ahead.

Madam Speaker, I urge a ``yes'' vote, and I yield back the balance of my time.

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