Vote Alert
“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
