McHenry's Crowdfunding Bill Part Of JOBS Act
The News & Observer (NC)
February 29, 2012
U.S. Rep. Patrick McHenry’s crowdfunding bill was one of six bills bundled together into House Republicans new JOBS Act introduced Tuesday.
House Majority Leader Eric Cantor, R-Va., said the Jumpstart Our Business Startups Act would allow small businesses to “flourish” by increasing their access to capital and reduce regulatory burdens.
“That's what we believe is the secret to the success of growing this economy, it is to get the small business engine started again,” he said.
Several of the proposed bills, including crowdfunding, passed the House with large bipartisan support, but have stalled in the Democratic-controlled Senate. The crowdfunding bill passed by a margin of 407 to 17.
The White House has signaled a willingness to work with Republicans.
“I think there is great opportunity to -- and great overlap between this administration’s position on some of these issues, especially with regards to small businesses,” Press Secretary Jay Carney said Tuesday.
The crowdfunding bill would ease federal restrictions and allow entrepreneurs to raise capital from a large pool of small investors.
The JOBS Act also includes a proposal to remove a Securities and Exchange ban on small companies using advertising to solicit investors and another easing SEC regulations to allow small companies to go public at lower costs.
“There’s not much that folks agree on in Washington these days, but getting our economy back on the right track is something that everyone supports,” said McHenry, a Cherryville Republican. “Economists predict that crowdfunding legislation will increase new-business startups by at least 10 percent. With unemployment in North Carolina higher than the national average, I’m hopeful that the Senate is ready to act.”