Cuellar Votes for Bipartisan JOBS Bill
The bipartisan, bicameral Jumpstart our Small Business Startups Act swiftly passed the House and is headed to the President’s desk for signature
Mar 27, 2012 -
Congressman Henry Cuellar, D-Texas, today voted for the Jumpstart our Business Startups (JOBS) Act, a bipartisan bill that will help boost job creation and rebuild the economy. The bill, H.R. 3606, passed the House by a vote of 380 to 40, and now heads to the President’s desk for his signature.
The JOBS Act creates exemptions and modifications to existing securities laws and regulations to ease certain regulatory compliance requirements to lessen burdens small companies within those industries to allow more business development and job creation. It also encourages small businesses to raise capital and includes provisions to protect investors to ensure less fraud and necessary safeguard for those who invest.
“This is the type of bipartisanship we need in Congress,” said Cuellar. “This is what we can accomplish if we reach across the aisle to draft legislation for the good of the nation. We need more compromise between parties so that we can put our economy back on a long-term track of prosperity.”
The measure will boost capital formation for small businesses by loosening Securities and Exchange Commission (SEC) caps and rules on when and how smaller businesses raise money from investors. Under current law, companies must register with the SEC when they first offer their stock publicly and when their private investor base reaches certain thresholds.
“The JOBS Act is a step in the right direction to help re-energize our small businesses,” said Cuellar. “Small businesses, community banks and investors all contribute to raising capital and fostering economic growth for the business community and the nation. This bill reduces regulatory burdens, while providing protections to these entities, so they can focus on growth and more jobs. It is a stable and sound step forward for the industry.”
Once implemented, the JOBS act will create a new category of issuers of initial public offerings (IPOs) of stock called "emerging growth companies" and remove or reduce some of the SEC reporting and regulatory requirements placed on IPOs. It also defines an emerging growth company as one for which the total annual gross revenue for the fiscal year prior to the IPO was less than $1 billion. Studies have found that a large part of small-business growth and job creation occurs after the company becomes publicly traded, which this measure allows to happen easier with appropriate reporting requirements.
The measure increases the thresholds that companies must meet before they are required to register and file information with the SEC. It also raises the threshold for mandatory registration by companies with the SEC to 1,000 shareholders from 500, which is believed to assist small businesses and institutions by eliminating costly reporting requirements.
The JOBS Act is supported by the American Bankers Association, the U.S. Chamber of Commerce, and the Texas Bankers Association among other groups. Cuellar also supported the initial House version of the bill passed on March 02, 2012 by a vote of 390 to 23.