Chief Deputy Whip Patrick McHenry, Vice Chairman of the House Financial Services Committee, and Senator Heidi Heitkamp both released comments on H.R. 1219 / S 444.
The Supporting America’s Innovators Act of 2017 amends an exemption under the Investment Company Act of 1940 by increasing the investor limitation from 100 to 250 people for qualifying venture capital funds. The bill was created to eliminate a significant barrier facing small businesses and startups, instead incentivizing venture capital funds to grow their investments in rural-state entrepreneurs, helping local economies grow and thrive. Each bill now moves to the full Senate / House for a vote. Due to the bipartisan nature of the legislation, it is virtually assured to pass quickly and move to the White House to be signed into law.
Congressman McHenry commented on the legislation;
“Over the past five years I’ve worked tirelessly to update our federal regulatory framework so it works for small businesses and startups. Today, we took a huge step in those efforts as the Supporting America’s Innovators Act passed out of both the House Financial Services and Senate Banking Committees. With bipartisan support in both chambers, I’m confident this bill will soon become law, allowing angel investing to reach its true potential.”
Senator Heitkamp added;
“By making sure rural startups and small businesses have better access to investments from venture capital funds, we can help create new jobs and strengthen our hometown economies. Today, committees in both the House and Senate agreed. By passing our bipartisan, bicameral bill, it will help sharpen the focus on exciting new startup and small business investment opportunities that exist here in the heartland and get rid of a barrier to economic growth. We introduced our bill just last week, and it’s already gained tremendous momentum – and I’ll keep working to build on that excitement for bipartisan reforms that grow and invigorate our economy.”
Even with the Republicans controlling both the House and Senate the thin margin in the Senate means support by the minority party can be crucial in getting legislation passed.
In December 2016, Senator Heitkamp, along with Senator Heller, helped to pass the bipartisan SEC Small Business Advocate Act. The legislation was crafted to provide small business a voice at the SEC thus helping to promote much needed competition and access to capital for SMEs.