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“YES” on H.R. 2930, the “Entrepreneur Access to Capital Act,” and H.R. 2940, the “Access to Capital for Job Creators Act.”
November 3, 2011
NTU urges all Representatives to vote “YES” on H.R. 2930, the “Entrepreneur Access to Capital Act,” and H.R. 2940, the “Access to Capital for Job Creators Act.” Introduced by Rep. McHenry (R-NC) and Rep. McCarthy (R-CA) respectively, these bills will ease the regulatory constraints preventing start-up businesses from raising early stage capital.
A challenging lending environment coupled with onerous securities regulations have made it difficult for entrepreneurs to identify and secure the resources needed to take their ideas to the next business phase. The Entrepreneur Access to Capital Act will address these concerns by providing a crowdfunding exemption to Securities and Exchange Commission (SEC) registration requirements. This exemption will enable businesses to accept donations from an unlimited amount of investors for the first $5 million raised, opening up a new universe of capital for job creators to explore.
To further amplify the effectiveness of crowdfunding, the Access to Capital for Job Creators Act would eliminate the prohibition on “general solicitation” that is currently required to be eligible for an exemption from SEC registration. By thoughtfully reconstructing this regulatory barrier, entrepreneurs will be able to contact investors beyond those with whom they have a preexisting, substantive relationship – a change that will greatly expand the pool of potential investors.
Roll call votes on H.R. 2930 and H.R. 2940 will be significantly weighted in our annual Rating of Congress and “YES” votes will be considered the pro-taxpayer positions.
If you have any questions, please contact NTU Federal Government Affairs Manager Brandon Greife at (703) 683-5700