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) andRep. McCarthy (R-CA) respectively, these bills will ease the regulatory constraintspreventing start-up businesses from raising early stage capital.
Achallenging lending environment coupled with onerous securities regulationshave made it difficult for entrepreneurs to identify and secure the resourcesneeded to take their ideas to the next business phase. The Entrepreneur Accessto Capital Act will address these concerns by providing a crowdfundingexemption to Securities and Exchange Commission (SEC) registrationrequirements. This exemption will enable businesses to accept donations from anunlimited amount of investors for the first $5 million raised, opening up a newuniverse of capital for job creators to explore.
Tofurther amplify the effectiveness of crowdfunding, the Access to Capital forJob Creators Act would eliminate the prohibition on “general solicitation” thatis currently required to be eligible for an exemption from SEC registration. Bythoughtfully reconstructing this regulatory barrier, entrepreneurs will be ableto contact investors beyond those with whom they have a preexisting, substantiverelationship – a change that will greatly expand the pool of potentialinvestors.
Roll callvotes on H.R. 2930 and H.R. 2940 will be significantly weighted in ourannual 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