House Passes the Supporting America’s Innovators Act
April 6, 2017 -
Bipartisan legislation aimed at boosting private investments in small businesses and startup companies passed the House 417-3 today.
The Supporting America’s Innovators Act updates a nearly 80-year old regulatory requirement that requires certain venture capital funds to register with the Securities and Exchange Commission (SEC) if more than 100 individuals invest in them. The bill increases the limit from 100 to 250, a change that would permit angel and venture funds to better help accredited investors invest in small business startups.
“Excessive regulations give the biggest companies a competitive advantage but undermine entrepreneurs, small business owners, and the investors that back them with capital. To address this imbalance, we must level the playing field for small businesses with smarter regulations that maintain fair and efficient markets, protect investors and still allow small competitors the chance to succeed,” said Financial Services Committee Chairman Jeb Hensarling (R-TX).
The sponsor of the bipartisan bill, Rep. Patrick McHenry, said, “We need to address the challenges facing angel investing so that startups and small businesses can have better access to capital. We do this by changing our mindset here in Washington by creating a regulatory framework that encourages innovation and growth, while ensuring that shareholder and investor protections remain strong.” Rep. McHenry serves as the Vice Chairman of the Financial Services Committee.
“This is another example of great, bipartisan legislation that has been produced by the Financial Services Committee,” said Rep. Randy Hultgren (R-IL) during debate in the House.