In other words, if I had wanted to expand Kevin O’s deli across California’s Central Valley by opening five additional stores and needed more capital than a typical business loan, a good way would be through selling securities to investors. Unfortunately, I would have been prohibited from being an entrepreneur and asking people I didn’t know to invest in my business, even if they were already deemed “accredited” by the SEC.
I would have had to register with the SEC and incur all of the associated extra costs and legal fees just to solicit investment from wealthy and sophisticated millionaire investors.
This regulatory obstacle is actively preventing job creation, which is why I’ve introduced legislation to repeal this burdensome solicitation prohibition. My bill, the Access to Capital for Job Creators Act, will help entrepreneurs and small-business owners access the capital they need to be innovative, dynamic and, ultimately, become the thing our economy needs most right now: job creators.
This legislation is simply one step of the many that are needed to promote job creation and economic growth, but it’s a vital step forward. By unshackling entrepreneurs and small businesses from excessive federal regulations, our economy’s job-creation engine will once again put us back on the path to prosperity.
House Majority Whip Kevin McCarthy (R-Calif.) serves on the Financial Services Committee.