McHenry Crowdfunding, Angel Investing Bills Pass House
Both bills are part of House Republican's Innovation Initiative
Washington, July 5, 2016 | Jeff Butler (202-225-2576)
This evening, Chief Deputy Whip Patrick McHenry (R, NC-10), Vice Chairman of the House Financial Services Committee and co-leader of House Republican's Innovation Initiative, had two bills addressing capital formation for small businesses pass the House with wide, bipartisan support.
H.R. 4854, the Supporting America's Innovators Act passed the House by a vote of 388 - 9, while H.R. 4855 the Fix Crowdfunding Act passed the House by a vote of 394 - 4. Both bills are part of the Innovation Initiative which was jointly launched by Congressman McHenry and Majority Leader Kevin McCarthy (R, CA-23). The bills now head to the Senate where they await action.
“Small businesses and entrepreneurs are America’s true job creators, especially in communities like those I represent in western North Carolina," said Congressman McHenry. "But today, they face a capital crisis. Small business lending from traditional banks is way down and America’s smallest communities are losing more jobs than they create."
“Today, the House passed two bills with strong bipartisan support that begin to confront this crisis," Congressman McHenry continued. "Angel investing and investment crowdfunding are both innovative new forms of capital formation that—in the proper regulatory climate—can become vital tools for entrepreneurs and small businesses. My two bills help to ensure investment crowdfunding and angel investing reach their true potential.”
H.R. 4854, the Supporting America's Innovators Act of 2016 amends an exemption under the Investment Company Act of 1940 to by increasing the investor limitation from 100 to 250 persons for qualifying venture capital funds. Congressman McHenry's floor speech in support of H.R. 4854 can be accessed by clicking here or on the image below. The text of H.R. 4854 is available here.
H.R. 4855, the Fix Crowdfunding Act amends Title III of the JOBS Act by raising the dollar amount limit and clarifying certain requirements under the Exchange Act 12(g) requirements, and permit single purpose funds to participate in the sale and offer of crowdfunding securities. Congressman McHenry's floor speech in support of H.R. 4855 can be accessed by clicking here or on the image below. The text of H.R. 4855 is available here.