Helping Startups Continue to Grow Act

To provide for a 5-year extension of certain exemptions and reduced disclosure requirements for companies that were emerging growth companies and would continue to be emerging growth companies but for the 5-year restriction on emerging growth companies, and for other purposes. 1. Short title This Act may be cited as the Helping Startups Continue to Grow Act 2. On-ramp extension (a) Definition of a recent emerging growth company (1) Securities Act of 1933 Section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) (20) Recent emerging growth company The term recent emerging growth company (A) was, but is no longer, an emerging growth company; (B) would continue to be an emerging growth company but for the application of subparagraph (B) of paragraph (19); and (C) ceased to be an emerging growth company within the previous 5-year period. . (2) Securities Exchange Act of 1934 Section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) (A) by redesignating the second paragraph (80) as paragraph (81); and (B) by adding at the end the following: (82) Recent emerging growth company The term recent emerging growth company (A) was, but is no longer, an emerging growth company; (B) would continue to be an emerging growth company but for the application of subparagraph (B) of paragraph (80); and (C) ceased to be an emerging growth company within the previous 5-year period. . (b) Streamlined financial disclosures (1) Securities Act of 1933 Section 7(a)(2) of the Securities Act of 1933 ( 15 U.S.C. 77g(a)(2) (A) by inserting after An emerging growth company and a recent emerging growth company (B) in subparagraph (A)— (i) by striking such emerging growth company such company (ii) by striking an emerging growth company such company (2) Securities Exchange Act of 1934 Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) The previous sentence shall apply, to the same extent as such sentence applies to an emerging growth company, to a recent emerging growth company. (3) Other disclosures A recent emerging growth company (as defined under section 2 of the Securities Act of 1933) may comply with section 229.303(a) of title 17, Code of Federal Regulations, or any successor thereto, by providing information required by such section with respect to the financial statements of the company for each period presented pursuant to section 7(a) of the Securities Act of 1933 ( 15 U.S.C. 77g(a) (c) Draft registration statements Section 6(e)(1) of the Securities Act of 1933 ( 15 U.S.C. 77f(e)(1) emerging growth company emerging growth company or recent emerging growth company (d) Executive compensation disclosures (1) Certain shareholder disclosures Section 14A(e)(2) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78n–1(e) (A) in subparagraph (A), by striking An emerging growth company Any emerging growth company or recent emerging growth company (B) in subparagraph (B)— (i) in the heading, by striking termination of emerging growth company treatment exemption (ii) by striking an emerging growth company but is no longer an emerging growth company exempt under subparagraph (A) but is no longer exempt (iii) in clause (ii), by inserting before the period the following: or a recent emerging growth company (2) Pay ratio disclosures Section 953(b)(1) of the Investor Protection and Securities Reform Act of 2010 ( 15 U.S.C. 78l , as that term is defined in or a recent emerging growth company, as such terms are defined, respectively, under (3) Pay vs. performance disclosures Section 14(i) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78n(i) emerging growth company or a recent emerging growth company (4) Simplified executive compensation disclosures The Securities and Exchange Commission shall amend section 229.402(l) of title 17, Code of Federal Regulations, to permit a recent emerging growth company (as defined under section 2 of the Securities Act of 1933) to make use of the same scaled disclosures for executive compensation that are available pursuant to such section for smaller reporting companies and emerging growth companies.

Summary: Helping Startups Continue to Grow Act This bill allows certain issuers of securities regulated as emerging growth companies to continue operating under such regulations, including those related to reduced disclosures and other exemptions, for an additional five years.