Expanding Access to Capital Act of 2023

Floor Speech

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Mr. LAWLER. Mr. Chair, today I rise to urge the House to adopt my amendment, which would include the Helping Angels Lead Our Startups Act, otherwise known as the HALOS Act, into the underlying bill.

The HALOS Act will promote access to investment capital for small companies and ensure that startups can continue to generate interest and connect with investors.

It will do this by ensuring that demo days, pitch competitions, and community economic development events where there is no specific investment offering are not considered general solicitation under Reg D.

In doing so, companies will be able to engage with a wider audience of investors and spread word of the products and services that they can offer to help develop a thriving and diverse economy.

Small businesses are facing turbulent economic times. After surviving COVID, they are still dealing with the impacts of inflation, low confidence in the economy, and having to contend with many regulations which can stifle economic growth, prevent entrepreneurs from achieving their full potential, and frankly, prevent folks from living out their American Dream.

Entrepreneurs and small businesses drive the American economy. In 2019, the SBA calculated that close to 44 percent of our GDP was the result of small businesses.

Barriers like the general compliance requirements on general solicitations can reduce opportunities for small businesses, entrepreneurs, and everyday investors as they both soak up the amount of time and resources needed but also deter small businesses who are afraid of unintentionally violating these laws.

We have seen many successes from and since the passing of the bipartisan JOBS Act over a decade ago that helped reduce barriers to investment.

The HALOS Act is a logical next step on the road of clarifying and modernizing rules that will enable startups to find the resources they need to grow and thrive.

Angel investors who are defined by this bill not only play a major role in financing individual efforts to pursue their dream and start a business, but also often provide a wealth of advice and support for tens of thousands of startups.

Long-term impact can be seen as companies such as Amazon, Costco, Facebook, Google, and Starbucks all initially were funded by angel investors.

By alleviating burdens on businesses, cutting red tape, and making capital in our public markets easier and less costly for emerging companies, we will be helping to build a more diverse and inclusive universe of entrepreneurs and founders by expanding opportunities to underrepresented entrepreneurs and communities facing capital formation challenges.

The HALOS Act will simply allow folks to get eyes on their businesses and potentially find the vital investor they need to succeed.

Once again, I urge all of my colleagues to support this commonsense and bipartisan amendment to help our small businesses and startups.

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Mr. LAWLER. Mr. Chair, I would just remind the ranking member that you need to be an accredited investor to invest. Many of the examples that the gentlewoman highlights are frankly null and void.

Mr. Chair, may I inquire how much time I have remaining?

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Mr. LAWLER. Mr. Chair, I yield 2 minutes to the gentlewoman from Missouri (Mrs. Wagner), the chair of the Capital Markets Subcommittee.

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Mr. LAWLER. Mr. Chair, I rise again to urge the House to adopt my amendment, the Helping Angels Lead Our Startups Act, otherwise known as the HALOS Act, into the underlying bill.

Ensuring that folks have access to capital is critical, and this amendment will help ensure that our small businesses, which are the lifeblood of our economy, have greater access to capital and that accredited investors will be able to invest in these small startup businesses.

Mr. Chair, I urge all of my colleagues to support my amendment, and I yield back the balance of my time.

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