Washington, D.C. – U.S. Senator Amy Klobuchar today voted to help small businesses access critical capital needed to grow and create jobs. The bipartisan legislation would reduce barriers for rapidly growing start-up companies to go public, helping them attract investors and allowing them to use the money they get from the public markets to create more jobs.
“Minnesota’s economy is anchored in innovation and entrepreneurship and we pride ourselves on being a state where even the smallest start-up from the humblest beginnings can grow into a household name—whether it’s 3M that started as a small sandpaper business in Two Harbors, or Target that got off the ground as a little dry goods store on Nicollet Mall,” said Klobuchar. “This legislation will help ensure that innovative small businesses can access the capital they need to grow and create good jobs in their communities.”
The Jumpstart our Businesses Startup (JOBS) Act would create a new category of issuer for start-up companies known as an “Emerging Growth Company” (EGC) that would be allowed a slower accession into the Security and Exchange Commission’s full regulatory and fee structure. By reducing fees for these small start-up companies, they can go public faster and use the money they get from the public markets to create more jobs. An EGC would lose its status at the end of five years, or earlier, if it reaches $1 billion in annual gross revenue, or becomes a “large accelerated filer,” which is a company that is publicly valued at $700 million. The legislation also includes provisions to help community banks raise more capital and lend more money to small businesses, as well as help small firms attract new investors.