U.S. Rep. Bryan Steil (R-WI) introduced a bill in the U.S. House of Representatives that would streamline reporting requirements for startups and emerging growth companies.
The Helping Startups Continue to Grow Act (H.R. 3448) seeks to provide a five-year extension of certain exemptions and reduced disclosure requirements.
“We must give entrepreneurs the tools to recover and succeed following the pandemic. Reducing regulatory burdens is one step to help new companies create jobs and grow wages. My bill allows startups to focus on supporting workers, expanding their company, and developing the best products in the world rather than dealing with regulations and compliance costs. Thank you to Congressmen Hill and Hollingsworth for supporting the Helping Startups Continue to Grow Act,” Steil said.
Currently, emerging growth companies (EGCs) can maintain their status as an EGC for up to five years after they become a public company. However, many of them are not generating enough revenue five years after becoming public to support the compliance costs resulting from a loss of EGC status. With the five-year extension, startup companies won’t have to spend their time and money on bureaucratic regulations and compliance procedures meant for larger and more mature firms. Instead, these companies can focus on investing in their businesses.
The bill was cosponsored by U.S. Reps. French Hill (R-AR) and Trey Hollingsworth (R-IN).
“Entrepreneurs and small business owners are the lifeblood of Arkansas and America. Rep. Steil’s legislation allows these businesses to focus on growth and expansion in their early stages, which allows for more investment in our communities and our economy overall. I am proud to work with my colleague on this bill to help encourage entrepreneurial growth and success,” Hill said. “As the co-chair of the House Entrepreneurship Caucus and as a former entrepreneur myself, I have and will continue to promote and support legislation that bolsters startups as our economy recovers from the current health crisis.”