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The News and Tribune by: Elizabeth Beilman A bill sponsored by Rep. Trey Hollingsworth that passed out of the U.S. House of Representatives almost unanimously is meant to chip away at the estimated $1.9 trillion spent complying with federal regulations every year. Hollingsworth introduced the Improving Access to Capital Act, also sponsored by Rep. Kyrsten Sinema, D-Ariz., that expands to certain small businesses the Jumpstart Our Business Startups (JOBS) Act passed under President Obama's administration. The JOBS Act allowed small businesses to raise up to $50 million in crowd funding online without going through a full public offering, which can be very expensive and time-consuming. This meant startup companies can now sell stock to accredited and unaccredited investors. But the act didn't apply to companies that were already public and compliant with the U.S. Securities and Exchange Commission. Hollingsworth's bill expands that portion of the JOBS Act, called Regulation A+, to already reporting companies. The House passed it 403 to 3 last week. "I am thankful that my colleagues saw the overwhelming benefit the Improving Access to Capital Act will have to small businesses looking to expand," Hollingsworth stated in a news release. "Ultimately, reinforcing our economy and encouraging more American innovation is not a partisan issue and that was proven by the overwhelming support by both Republicans and Democrats." Although the tweak to the JOBS Act itself is small, it's meant to create big pay-offs for burgeoning companies. Hollingsworth's intent is to encourage businesses to allocate resources on job creation and growth, according to staff. The bill now awaits a vote from the U.S. Senate. This article originally appeared in The News and Tribune and was authored by Elizabeth Beilman. |
