Date: 2011-11-03
Speaker: JACKSON LEE (democrat)
Chamber: H
State: Texas

Madam Chair. I rise today in support of H.R. 2930. "Entrepreneur Access to Capital Act" to amend the securities laws to provide for registration exemptions for certain crowdfunded securities. and for other purposes. This bill reduces the regulatory burdens on capital formation by small businesses and addresses regulations on crowdfunding. The concept of crowdfunding focuses on collective cooperation where investors try to get funding publicly instead of from personal contacts. The network is large. and many investors are often found through the Internet. It is a valuable tool for startups and other fledgling businesses. As I have said time and time again. startups are the lifeblood of our economy and American innovation. They provide necessary jobs. especially in this sluggish market. This bill provides a crowdfunding exemption to the Securities and Exchange Commission (SEC) registration requirements for firms raising up to $5 million. with individual investments limited to $10.000 or 10 percent of an investors income. As per the exemption. limits are removed on the number of investors until the first $5 million of capital is raised. This exemption provides smaller investors the chance to support startups. which is currently not an option under SEC regulation. There is a current 499shareholder cap for private companies. The bill excludes crowdfunding investors from the cap for private companies and removes the ban on general solicitation that exists in many current exemptions. I support this bill because its purpose is to ease the regulations that implement stipulations on garnering investors and capital. It is a measure fledgling small businesses benefit from. Also it should limit fraud and promote the jobs America needs. Without access to initial investors and capital. Houston native Michael Dell would not have been able to start one of the most successful computer retail businesses in the world. His $1.000 dollar primary investment in the 1980s allowed Dell Computers to become a household name. Without this capital. America would not have had one of its premier innovators. The economic impact of this legislation is encouraging. Businesses require investors and capital in order to expand and flourish. When businesses are presented with this opportunity. jobs are created that in turn. will stimulate economic growth. Dells headquarters alone employs roughly 16.000 people. I urge my colleagues to join me in supporting H.R. 2930. "Entrepreneur Access to Capital Act." this will ease SEC restrictions in order to stimulate innovation. and promote regulations that open up the sphere for startups that would not have the opportunity to succeed without a wide network of investors. This. in turn. promotes economic recovery and job creation. The Acting CHAIR. All time for general debate has expired. Pursuant to the rule. the amendment in the nature of a substitute printed in the bill shall be considered as an original bill for the purpose of amendment under the 5minute rule and shall be considered read. The text of the committee amendment in the nature of a substitute is as follows: H.R. 2930 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled.