U.S. House Passes Expanding Access to Capital Act, Paving the Way for Entrepreneurial Growth
Better options for investors and founders waiting to be voted in at Senate
The U.S. House of Representatives recently passed H.R. 2799, the Expanding Access to Capital Act, championed by Chairman Patrick McHenry.
This legislation, building on the success of the bipartisan JOBS Act of 2012, aims to reduce red tape for investors, job creators, and entrepreneurs seeking access to capital markets. H.R. 2799 focuses on strengthening public markets, aiding small businesses and entrepreneurs, and creating new investment opportunities. Republican amendments, adopted with bipartisan support, include clarifying definitions related to “general solicitation” and “angel investor,” directing the SEC to establish rules for electronic delivery of disclosures, and expanding investment options for retirement plans. Chairman McHenry emphasizes the bill’s potential to benefit Americans from all walks of life, providing greater access to achieve their entrepreneurial aspirations and financial goals.
Washington, March 8, 2024 — In a significant move toward fostering economic growth and supporting entrepreneurial endeavors, the U.S. House of Representatives recently approved Chairman Patrick McHenry’s H.R. 2799, the Expanding Access to Capital Act. Building upon the foundation laid by the bipartisan JOBS Act of 2012, this legislation is poised to streamline processes, reducing bureaucratic hurdles for investors, job creators, and entrepreneurs seeking entry into the capital markets.
Addressing Challenges for Job Creators Nationwide: Chairman McHenry emphasized the Act’s crucial role in addressing the unique challenges faced by job creators and investors residing outside major financial hubs. Entrepreneurs nationwide, grappling with accessing affordable capital, will find relief through the provisions of H.R. 2799. This legislation aims to create a more inclusive landscape, where individuals from all walks of life can pursue their American dream, whether saving for retirement or launching a startup.
Bipartisan Support and Strategic Amendments: The Expanding Access to Capital Act garnered bipartisan support, with Republican amendments further enhancing its scope. Notable amendments include Rep. Lawler’s clarification of “general solicitation” and “angel investor” definitions, ensuring startups can discuss their products and business plans at events like “demo days.” Rep. Huizenga’s amendment directs the SEC to establish rules for the electronic delivery of disclosures, while Rep. Lucas’s amendment broadens investment options for 403(b) plans. Rep. Wagner’s amendment allows closed-end investment companies to invest in securities issued by private funds, expanding investment avenues.
Championing Entrepreneurial Aspirations: Chairman McHenry expressed pride in the bill’s advancement, highlighting its potential to provide more people with the opportunity to achieve their American dream. By alleviating barriers to capital, the Expanding Access to Capital Act strives to empower entrepreneurs, support small businesses, and create new investment opportunities. As the legislation progresses, its positive impact on economic growth and the entrepreneurial landscape is eagerly anticipated.
Watch Chairman McHenry’s remarks and Stay Updated: [Link to Chairman McHenry’s remarks in support of the Expanding Access to Capital Act here.] Stay tuned for further updates as H.R. 2799 moves through the legislative process, shaping the future of entrepreneurial endeavors and capital access in the United States.
