House lawmakers Thursday afternoon easily passed a bill meant to help small businesses grow and go public more quickly, changes that also have garnered widespread support from business groups, members of the Senate and the Obama administration.
The Jumpstart Our Business Startups (JOBS) Act consists of six reform measures that would ease Securities and Exchange Commission rules that can impede or slow the process for companies trying to enter the public markets. In an increasingly rare showing of bipartisanship, the House passed the measure 390-23, and already, the move has prompted praise from several advocacy groups and policymakers in Washington.
Some of the early feedback on the passage of the bill and what it would mean for small businesses across the country:
Rep. Sam Graves (R-Mo.), chairman, House Small Business Committee:
“To build a stronger economic recovery, we should end any threats of tax increases, address our debt crisis, pull back on unnecessary federal regulations, and remove barriers to starting businesses. The JOBS Act will help do this by increasing capital formation and paving the way for more small-scale businesses to go public and create more jobs. The JOBS Act will allow access to more financing for small businesses and address regulatory burdens that small businesses face.”
Steve Caldeira, president and chief executive, International Franchise Association:
“We applaud the House for coming to bipartisan agreement on legislation that will boost access to capital for franchise businesses, particularly given its direct correlation to job creation. For every $1 million in lending to franchise businesses, 34 new jobs are created…Any steps that can be taken to open the credit spigot to small businesses will help the economy as a whole, and we urge the Senate to move swiftly to consider this important and sensible piece of legislation.”
Jim Greenwood, president and chief executive, Biotechnology Industry Organization:
“BIO supports these reforms, which are especially important to innovative biotechnology companies that do not yet have product revenue and must spend investor dollars on compliance rather than the search for cures and breakthrough medicines for patients living with debilitating diseases such as cancer, HIV/AIDS and Parkinson’s.This legislation would make capital formation easier for small biotechnology companies, enabling them to focus more on curing and treating disease.”
The Obama administration:
“The administration looks forward to continuing to work with the House and the Senate to craft legislation that facilitates capital formation and job growth for small businesses and provides appropriate investor protections,” the statement says.