U.S. Representatives Patrick McHenry (R-NC) and Tom Emmer (R-MN) introduced legislation that would create a new exemption to help small businesses access capital to create jobs and rebuild themselves from the impact of COVID- 19.
The Small Entrepreneur Empowerment and Development (SEED) Act of 2021, HR 5458, introduced on September 30, would create a new permanent micro-bid exemption without mandatory disclosure or bidding to allow wider access to the market. capital for emerging entrepreneurs and small businesses. With this bill, job creators would be allowed to raise up to $ 250,000 per year without these regulatory burdens.
“A thriving main street is essential to our economic recovery,” said McHenry, senior member of the House financial services committee. “Our bill will not only help our small businesses rebuild after suffering the shock of COVID-19, but will also create more jobs in their communities. This simple and streamlined micro-bid exemption will reduce barriers to capital formation for these entrepreneurs, many of whom need financing options different from those offered by traditional banks.
The bill would be particularly beneficial for women and minority entrepreneurs, who disproportionately face barriers to accessing traditional financing options, lawmakers said. The bill maintains investor protections, including the anti-fraud provisions of federal securities laws. The exemption would be particularly useful for small businesses rebuilding from the coronavirus, they added.
“Small business owners and entrepreneurs are the backbone of our society and are responsible for more than half of the new jobs created each year,” said Emmer, top Republican on the oversight and monitoring subcommittee. surveys. “Unfortunately, they suffered lockdowns and forced closures during the COVID-19 pandemic. However, even before the public health crisis, government regulations tied their hands, making it difficult to start or expand. “