Nov 3, 2011
WASHINGTON – Today, Congressman Patrick McHenry (NC-10), Chairman of the Oversight Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs, applauded House passage of the Entrepreneur Access to Capital Act, H.R. 2930. The legislation enjoyed broad bipartisan support, passing by a vote of 407 to 17 and receiving a supportive Statement of Administration Policy* from the President.
“Small business folks in Western North Carolina tell me time and time again that uncertainty and over-regulation are hampering their growth. So it unfortunately comes as no surprise that over two years into a sluggish economic recovery, nearly 14 million Americans remain unemployed as entrepreneurs continue to struggle with gaining access to much needed capital," McHenry said.
"It’s clear that we need new ways to help small businesses and entrepreneurs take their ideas from the dinner table to the production line. The first step is to modernize outdated regulations that stand as barriers to American innovation. This legislation will ensure that our small businesses are not left behind. Crowdfunding can help give them the means to create jobs for hard-working individuals here at home."
Specifically the bill will do the following:
- Create a crowdfunding exemption from SEC regulations for firms raising up to $2 million, with individual investments limited to $10,000 or 10 percent of an investor’s annual income.
- Excludes crowdfunding investors from counting as shareholders for purposes of calculating the 499-shareholder cap under 12(g) of the Securities Exchange Act
- Preempt state law and exempts the ban on general solicitation for the new crowdfunding exemption.
*Statement of Administation Policy
Visit mchenry.house.gov/crowdfunding for more information about H.R. 2930