House Majority Leader Eric Cantor’s forthcoming economic proposal designed to boost capital formation for small businesses will include a series of bills that carry broad bipartisan support, according to a partial summary of the legislation.
The summary shows bills introduced by Republican Reps. Stephen Fincher (Tenn.), Kevin McCarthy (Calif.), Patrick McHenry (N.C.) and David Schweikert (Ariz.) are part of the package, dubbed the Jumpstart Our Business Startups Act. Cantor is also crafting a 20 percent tax cut for small businesses.
In a taped interview for “Fox News Sunday,” the Virginia Republican was optimistic the measures could be signed into law, saying there is a “window of opportunity for us to get something done” to boost the economy.
But several Republicans said privately they are pessimistic the Senate will act on any House-passed bills dealing with the economy.
Cantor’s JOBS package includes H.R. 3606, a bill introduced by Fincher and reported out of the Financial Services Committee on Feb. 16 by a vote of 54-1.
The bill would phase in financial reporting regulations over five years after a company’s initial public offering.
“This temporary reprieve from costly regulations will allow smaller companies to go public sooner, which directly leads to more job creation within the company,” the summary says.
The bill would exempt these newly formed companies from a requirement in Sarbanes-Oxley Act for an outside auditor to attest to the company’s internal controls and procedures, exempt an annual vote by stockholders on executive compensation arrangements and ease requirements on these companies to provide audited financial statements.
The exemptions are “designed to be temporary and transitional,” the summary says.
A second bill in Cantor’s proposal, introduced by McCarthy, would eliminate a regulatory ban on small businesses from advertising to solicit investors. That measure passed the House Nov. 3 by a vote of 413-11.
The third bill in Cantor’s proposal, introduced by McHenry, eliminates restrictions on the type of investors who can provide equity capital to small businesses. Currently, regulations only permit “accredited” individuals to invest in some circumstances. The bill passed the House 407-17 on Nov. 3.
Cantor’s proposal also includes two bills introduced by Schweikert.
The first, which passed the House Nov. 2 by a vote of 421-1, increases the threshold for a business to be required to register with the Securities and Exchange Commission from $5 million to $50 million in amount of securities sold.
The second, which was reported out of the Financial Services Committee in December by voice vote, would raise the threshold for a business to be required to register with the SEC from 500 shareholders to 1,000 shareholders.
Sen. Dianne Feinstein, D-Calif., chairman of the Senate Intelligence Committee, speaks with reporters in the Capitol after a speech on the Senate floor that accused the CIA of searching computers set up for Congressional staff for their research of interrogation programs.