Encouraging Local Emerging Ventures and Economic Growth Act of 2025

Floor Speech

This bill illustrates what I said earlier today, that the most fascinating issues are those that involve accounting and auditing.

Mr. Speaker, I rise in support of H.R. 3301, the ELEVATE Act of 2025, sponsored by the gentlewoman from Iowa (Mr. Nunn).

Emerging growth companies, also known as EGCs, are a special type of public company that we created during the bipartisan JOBS Act of 2012. Unlike full-fledged public companies, EGCs only need to provide 2 years of audited financials when they conduct their initial public offering, also known as an IPO.

Despite this special 2-year accommodation, there are some instances where an EGC, emerging growth company, is still required to provide 3 years of financials, still required under present law. One such instance is when the EGC conducts a spinoff, which is a transaction in which one company creates a new, independent company by selling new shares of its existing business. So the one company becomes two separate companies through a spinoff transaction.

Mr. Nunn's bill reduces this obligation for EGC spinoffs to 2 years. That is only 2 years of audited financials, keeping in line with what is required when the EGC itself goes public.

In doing so, this bill streamlines the financial disclosure obligations for emerging growth companies across the board making it easier for them to raise capital from the public.

I commend the gentleman from Iowa (Mr. Nunn) on this bill. I urge my colleagues to support the ELEVATE Act of 2025, which would streamline accounting disclosure requirements and auditing requirements for emerging growth companies, also known as EGCs, so those EGCs only need to provide 2 years of audited financial statements across the board.

Like other bills that Democrats and Republicans have come to bipartisan agreement on, this bill balances the concern of those trying to raise capital while also maintaining disclosures and financial transparency that benefit and protect investors and thereby protect our capital markets, which so many speakers have pointed out are the envy of the world.

Mr. Speaker, I ask my colleagues to vote ``yes'' on this bill, and I yield back the balance of my time.

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