U.S. Reps. David Schweikert (R-AZ) and French Hill (R-AZ) introduced legislation Wednesday that would expand the ability of some Americans to invest in private offerings.
The Fair Investment Opportunities for Professional Experts Act would expand the definition of an accredited investor to include those with relevant education, professional experience, or other similar credentials with the opportunity to invest in private offerings. The legislation would allow more Americans to invest in private companies and provide small businesses with expanded opportunities to raise capital.
“I am pleased to re-introduce this legislation to rightfully expand the definition of an accredited investor. This would expand the definition to include professional experts, providing more Americans with the opportunity to invest in ideas based on their knowledge and capabilities, without being penalized for their current income levels,” Schweikert said. “The current financial restrictions on investors are based exclusively on an individual’s income and wealth, excluding too many hard-working Americans who have the experiences necessary to be provided access to capital.”
The bill was previously passed by a voice vote of the full House of the 115th Congress. However, during the 116th Congress, the bill did not receive either Committee or Floor consideration.
“An arbitrary wealth test should not be the metric by which the federal government determines who can and who can’t invest in private offerings,” Hill said. “Small businesses and startups in Arkansas and across the country are integral to our nation’s economic growth, innovation, and job creation. This legislation would simply provide individuals who demonstrate a strong understanding of an offering the opportunity to invest in private offerings – providing greater investment opportunities for Arkansans and enabling entrepreneurs to create more jobs.”