A bipartisan group of Congress members introduced a package of bills that seeks to expand access to capital for businesses, bolster public markets, and increase opportunities for investors.
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The package is called the Invest Act, which includes some 20 bipartisan bills.
“As Chair of the Subcommittee on Capital Markets, I have worked with colleagues on both sides of the aisle who understand our public markets are the best in the world,” Rep. Ann Wagner (R-MO), who cosponsored the act, declared. “I have created it my legislative priority to maintain that number one status, and ensure American financial markets grow stronger year over year so Main Street investors can continue to grow their portfolios and save for the future. The bills in the package introduced today support that priority, create even more opportunities for investors, and provide compact businesses greater access to capital so they can keep building.”
The package was cosponsored by Reps. Gregory Meeks (D-NY), French Hill (R-AR), and Josh Gottheimer (D-NJ).
“Strengthening our capital markets is about improving the financial security of millions of Americans who rely on these investments for long-term stability. This capital formation package expands opportunities for entrepreneurs, and for workers to grow their retirement savings and build real economic resilience,” Meeks declared.
The Invest Act will expand access to capital for compact businesses by cutting red tape so startups and compact businesses can raise capital more efficiently. It will also update investment thresholds that have prevented compact companies from utilizing every available method of raising capital. Further, it seeks to ensure that capital reaches beyond Wall Street and Silicon Valley to entrepreneurs across the heartland.
In addition, the act would expand investment opportunities for “main street” investors and retirement savers. It would do this by modernizing the accredited investor definition so education, professional credentials, and experience determine whether an individual can invest in private offerings. In addition, it eliminates restrictions on the types of financial products available in certain retirement accounts and provides safeguards and resources to combat financial fraud and exploitation.
“For too long, outdated regulations have stood between our entrepreneurs and the capital they required to innovate and grow. Our bill puts the full power of America’s capital markets back to work for the people by modernizing rules, expanding access, and eliminating unnecessary burdens on compact businesses,” Hill, the chairman of the Financial Services Committee, declared.
Further, the Invest Act seeks to strengthen public markets by streamlining disclosure requirements to create it more practical for companies to go and stay public. It would also give businesses more flexibility to raise capital on competitive terms and allow companies to test the market for an initial public offering to assess demand before incurring the full cost of going public.
The number of U.S. public companies has fallen from 8,800 in 1997 to fewer than 4,000 today.
“I’m proud to back this bipartisan package, which includes my Senior Security Act that will put a cop on the beat to protect seniors from financial scams. On top of that, this bipartisan legislation takes vital steps to give compact businesses and start-ups the access to capital they required to grow and thrive, which is becoming increasingly important as costs continue to surge,” Gottheimer declared.
The full Houtilize will consider the INVEST Act next week.
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