The Expanding Access to Capital Act (HR 2799) will go to a floor vote this week. If approved, the legislation will then make its way to the Senate for potential approval.
The bill is sponsored by Congressman Patrick McHenry, Chairman of the House Financial Services Committee. The legislation aims to help smaller firms in need of capital as well as enabling smaller investors to gain access to certain private securities.
Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council, issued the following statement on the legislation:
“As we’ve seen in our previous two Small Business Checkup Surveys, access to capital and the cost and availability of capital have become more challenging for small businesses and entrepreneurs. In our Q4 2023 checkup survey, nearly two-thirds of entrepreneurs rated the availability of capital or credit as ‘fair’ or ‘poor.’ Over half (53%) reported that the lack of capital and credit is ‘hampering their operating capacity.’ Policy efforts in Congress must focus on strengthening capital access and formation for our nation’s small businesses, and through the wide-ranging channels that entrepreneurs finance business startup and expansion.”
Kerrigan said the bill adapts and modernizes policies that hinder access to capital. Additionally, Accredited Investor rules will be broadened.
“… HR 2799 allows venture funds to positively leverage their work by raising money from more investors. Accredited investor rules are also modernized to tap into available capital beyond wealthy investors. The combined effect of the practical measures within H.R. 2799 means more capital for small businesses and more widely dispersed capital across the United States. U.S. policy must continue to strengthen U.S. competitiveness and investment, which means focusing on common-sense ways that private sector capital can make its way to our most innovative small businesses in every corner of the country. HR 2799 will help achieve that goal, and every member of the U.S. House needs to support this important piece of legislation.”
Congressman McHenry has been a longtime champion of smaller firms as well as smaller investors. He has announced he will depart Congress at the end of 2024.
You may see the list of amendments to the legislation here.
The bill may be viewed here.