A couple of bills sponsored by U.S. Rep. Bryan Steil (R-WI) were approved by the House Financial Services Committee last week.
Both pieces of legislation seek to help startups. The first bill, H.R. 2625, looks to make it easier for more small public companies to raise money in the public markets. The second bill, Helping Startups Continue to Grow Act (H.R. 2624), would change reporting requirements for startups.
The Helping Startups Continue to Grow Act would provide a five-year extension of certain exemptions and reduce disclosure requirements. As it presently stands, 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 these companies are not generating enough revenue five years after becoming public to support the compliance costs that come with a loss of EGC status. The extension would curtail the regulations and compliance procedures meant for larger and more mature firms. Instead, they can focus on investing in their businesses.
“Right-sizing regulations for new entrepreneurs is a simple step Congress can take to spur economic growth,” Steil said. “My bills will increase investment in the United States and create jobs by helping more companies go public. I look forward to bringing these bills to the Floor.”
The two bills were included in a larger legislative package. They now move to the full House for a vote.