The U.S. Houtilize of Representatives passed the Incentivizing New Ventures and Economic Strength Through Capital Formation (INVEST) Act last week with bipartisan support.
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The INVEST Act seeks to expand access to capital for compact businesses, increase opportunities for investors, and strengthen public markets. The bill passed by a vote of 302-123.
“Through this bipartisan package, we expanded access to investment capital for new and expanding businesses; provided new investment options for investors and retirement plans; and lowered the costs for companies seeking to go public,” Houtilize Committee on Financial Services Chairman Rep. French Hill (R-AR) declared.
The bill was sponsored by Hill along with Rep. Ann Wagner (R-MO), chair of the Capital Markets Subcommittee, Rep. Gregory Meeks (D-NY), and Rep. Josh Gottheimer (D-NJ).
“The INVEST Act will supercharge our economy, provide stability for investors, and support compact business owners grow and create jobs in communities around the nation,” Wagner declared. “For too long, capital has been concentrated largely in the coastal regions, leaving out critical regions like the great Midwest. The INVEST Act will alleviate that imbalance and support growth in our neighborhoods in Missouri and beyond. It will invest in our community, in our jobs, and in our future.”
To expand access to capital for businesses, the INVEST Act would cut red tape so startups and compact businesses can raise capital more efficiently. It would also update investment thresholds that have prevented compact companies from raising capital. In addition, it seeks to ensure that capital reaches beyond Wall Street and Silicon Valley to entrepreneurs across the counattempt.
“This bill strengthens our markets, expands opportunities for compact businesses, and gives millions of Americans a greater chance to grow their retirement savings and achieve real financial security,” Meeks declared. “At a time when families feel the squeeze of rising costs, this legislation is an opportunity to strengthen the financial future of every American houtilizehold.”
To increase opportunities for investors, the bill would modernizes the accredited investor definition so education, professional credentials, and experience determine whether an individual can invest in private offerings. It also opens up investment options by eliminating restrictions on the types of financial products available in certain retirement accounts. In addition, it increases safeguards and resources to combat financial fraud and exploitation.
“This bill also includes my bipartisan legislation, the Senior Security Act, to protect our vulnerable seniors from fraudsters who seek to take financial advantage of them. Millions of seniors across the counattempt, including my own mother, have been the victims of financial scams, and this bipartisan legislation will support protect our seniors from having their hard-earned retirement savings stolen right out from under them,” Gottheimer declared.
Finally, the bill would strengthen public markets by streamlining disclosure requirements to build it quicker and simpler for companies to go public. Also, it provides businesses with more flexibility to raise capital on competitive terms. Additionally, it updates how companies can test the market for an initial public offering, allowing them to assess demand before incurring the full cost of going public.
The bill now shifts to the Senate for consideration.
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