Source: United States Senator Kevin Cramer (R-ND)
WASHINGTON – Ahead of the 10th anniversary of the enactment of the bipartisan Jumpstart Our Business Startups (JOBS) Act, U.S. Senator Kevin Cramer (R-ND) and Senate Banking Committee Republicans today unveiled a discussion draft of a new plan to help accelerate economic growth and spur new business formation. The draft’s working title is the JOBS Act 4.0.
“Our work today seeks to accelerate economic growth and spur new business creation. These bills create more access to capital for businesses on Main Street and in rural communities while repealing burdensome requirements inhibiting growth and innovation. At a time with record inflation and Biden’s supply chain crisis, it’s more important than ever to work towards a regulatory environment where entrepreneurs, small businesses, and investors can thrive,” said Senator Cramer.
“The JOBS Act helped to revitalize interest in the public markets and spur economic growth, but it is clear significant work remains to be done to give retail investors access to higher returns and ensure American markets remain the deepest and most liquid in the world,” said Ranking Member Pat Toomey (R-PA). “The discussion draft we’re releasing today incorporates ideas from entrepreneurs, retail investors, and others, and includes numerous provisions with strong bipartisan support. I look forward to continue working with both Republican and Democrat colleagues on a final product that accelerates economic growth and spurs new job creation across the U.S.”
The discussion draft of the JOBS Act 4.0 takes into account stakeholder feedback and represents the collective efforts of Senate Republicans to introduce 24 standalone bills, 4 of which currently have bipartisan support. This includes Senator Cramer’s Unlocking Capital for Small Businesses Act and Dodd-Frank Material Disclosure Improvement Act.
The Unlocking Capital for Small Businesses Act, co-sponsored by Senator Thom Tillis (R-NC) expands access to capital for Main Street and rural small businesses. The Dodd-Frank Material Disclosure Improvement Act repeals burdensome disclosure requirements that inhibit growth and innovation.
The JOBS Act 4.0 would:
- Encourage companies to be publicly-traded: includes eight initiatives to encourage companies to become publicly-traded, particularly during earlier growth stages, when investors have the chance to earn the highest returns.
- Improve the market for private capital: includes six initiatives to reduce costs associated with seeking capital by appropriately tailoring regulations for small businesses.
- Enhance retail investor access to investment opportunities: includes seven initiatives to prevent retail investors from being excluded certain investment opportunities.
- Improve regulatory oversight: includes seven initiatives to enhance investor protection and privacy and to update outdated statutory and regulatory provisions.
Committee Republicans will collect feedback on the discussion draft through June 3, 2022. To submit feedback, please email submissions@banking.senate.gov.
Support for Senator Cramer’s Capital Formation Bills:
“SBE Council strongly supports the Unlocking Access to Capital Act, which provides clarity to government rules that have unfortunately created hurdles for entrepreneurs who need capital to launch or grow their businesses. Access to capital is a pressing matter for new and high-potential businesses, and enabling finders to more productively use their networks to help entrepreneurs with their capital needs not only benefits the entrepreneur, but also the broader economy and the many communities and regions of the country where capital is scarce. As our nation emerges out of the pandemic, strong and healthy businesses will be critically important to healing the economy and restoring strong growth. SBE Council is grateful for Senator Cramer’s leadership and for introducing this important legislation for America’s small businesses and entrepreneurs,” said Karen Kerrigan, President and CEO, Small Business & Entrepreneurship Council.
“The Unlocking Capital for Small Businesses Act of 2022 would bring an end to the uncertain and overbearing regulations faced by finders, allowing them to work better with small businesses and entrepreneurs to raise much-needed capital. Americans for Prosperity thanks Senator Cramer for introducing this important bill to help spur capital formation,” said Brent Wm. Gardner, Chief Government Affairs Officer, Americans for Prosperity. “The Dodd-Frank Material Disclosure Act would repeal unnecessary and burdensome disclosure requirements enacted under Dodd-Frank. These politically-charged disclosures place substantial costs on companies and fail to protect investors or maintain fair, orderly, and efficient markets. Americans for Prosperity thanks Senator Cramer for introducing this commonsense legislation.”