Key Vote Alert: Support HR 2799 to Empower Small Businesses

Mar 7, 2024 by AFP

Dear Representatives,

On behalf of millions of Americans for Prosperity activists in all 50 states, I urge you to support H.R. 2799, Expanding Access to Capital Act of 2023 sponsored by Representative Patrick McHenry. This transformational piece of legislation contains several provisions that will improve the capital formation landscape in both private and public markets.

Capital markets play a vital role in the U.S. economy, providing small businesses, entrepreneurs, and startups with the access to capital they need to innovate, grow, and create jobs. The Expanding Access to Capital Act would make vast improvements to these markets by right-sizing regulations and eliminating barriers that prevent businesses from securing the funds they need to launch and scale.

Within private markets, the bill would make several important changes. In particular, it would help clarify the SEC’s regulatory status for “finders” by providing them with an exemption from broker registration requirements. This clarification will ensure businesses do not face unnecessary barriers to accessing investor pools and is especially helpful for small businesses launching in areas where few people meet SEC’s accredited investor definition.

Addressing challenges within the latter stages of a business’s life cycle, the Expanding Access to Capital Act would make several changes that would help improve the vibrancy of public markets too Importantly, it would extend Emerging Growth Company (EGC) status for an additional five years beyond the existing timeframe. Temporarily exempting qualifying companies from several burdensome reporting requirements, the EGC designation has been an effective tool in encouraging smaller companies to pursue IPOs and this extension will help to make public markets a more attractive fundraising option for companies.

While the United States has the largest capital markets in the world, it is important for policymakers to continually revisit the regulations surrounding these markets to ensure that our nation remains the world’s hub of innovation and job creation.

It is for these reasons we urge you to support H.R. 2799, Expanding Access to Capital Act of 2023. This vote may be recorded in our 2024 legislative scorecard .

Visit AFP’s scorecard online at: AFPscorecard.org

Sincerely,

Brent Gardner
Chief Government Affairs Officer
Americans for Prosperity