Bill to Promote Small Business & Startup Investments Passes Senate, House Committees Bill Would Raise Ceiling of Accredited Investors from 100 to 250 Before SEC Registration is Required – Incentivizing More Venture Capital Investments in Rural States
PoliticalNews.me - Mar 11,2017 - Heitkamp, Heller and McHenry Bipartisan, Bicameral Bill to Promote Small Business & Startup Investments Passes Senate, House Committees
Bill Would Raise Ceiling of Accredited Investors from 100 to 250 Before SEC Registration is Required – Incentivizing More Venture Capital Investments in Rural States
WASHINGTON, D.C. – U.S. Senators Heidi Heitkamp (D-ND) and Dean Heller (R-NV) as well as Congressman Patrick McHenry (R-NC) announced their bipartisan, bicameral bill to help encourage investments in small businesses and startups in smaller communities passed in key committees in both the U.S. Senate and U.S. House of Representatives – the final step before votes in the full Senate and House.
Today, the U.S. Senate Committee on Banking, Housing, & Urban Affairs – where Heitkamp and Heller both help lead subcommittees – and the U.S. House Financial Services Committee, both passed the members’ Supporting America’s Innovators Act – which they just introduced last week. Their bill would help eliminate unnecessary red tape which would then incentivize venture capital funds to invest in small businesses, startups, and entrepreneurs in rural states. As a result, the bill would help support economic growth in rural communities tackle the challenge too many smaller venture capitalists face when seeking to establish investment funds in areas outside of the coasts, where there are fewer high net worth individuals, like North Dakota and other rural communities across the country.
The bill would increase the U.S. Securities and Exchange Commission’s (SEC) limit of accredited investors before a fund is required to spend the time and money registering with the agency from 100 to 250, so more venture capital funds can expand their footprint in areas like North Dakota. That increased proximity to capital can help pave the way the investment opportunities that burgeoning startup and small business communities need to get off the ground – and help encourage more diverse local economic growth.
“By making sure rural startups and small businesses have better access to investments from venture capital funds, we can help create new jobs and strengthen our hometown economies,” said Heitkamp. “Today, committees in both the House and Senate agreed. By passing our bipartisan, bicameral bill, it will help sharpen the focus on exciting new startup and small business investment opportunities that exist here in the heartland and get rid of a barrier to economic growth. We introduced our bill just last week, and it’s already gained tremendous momentum – and I’ll keep working to build on that excitement for bipartisan reforms that grow and invigorate our economy.”
“This bipartisan piece of legislation allows for more investors to enter into venture capital-type funds. That means small businesses will now have more access to capital to grow and create jobs. It also allows for more individual investors to participate in ventures with small businesses. I’d like to thank Senator Heitkamp for her leadership on this legislation,” said Heller.
"Over the past five years I've worked tirelessly to update our federal regulatory framework so it works for small businesses and startups,” said McHenry. “Today,