Washington, DC – Today, Representative Warren Davidson (OH-08) spoke in support of H.R. 2201 the “Micro Offering Safe Harbor Act,” which would allow small businesses to access the capital necessary for growth.

H.R. 2201, which passed the House today, allows small companies to access early-stage capital from sources such as friends and family without going through the same regulatory requirements as a large company seeking public offerings. 

   

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Transcript: 

“I want to thank Mr. Emmer for his leadership on this bill. 

“As a small business man, prior to coming to congress, I raised capital for start-ups, and I can tell you one option is no option. I can tell you that the regulatory framework, particularly made worse by Dodd-Frank, is crippling access to capital for small and medium-sized businesses. 

“One option is no option. It’s great to have this for small, early stage companies that are trying to raise capital in private placements. 

“Right now, most of this is done for accredited investors, effectively this protects deal flow for people already wealthy, and it locks people out of access to capital. But importantly, for the entrepreneur, sometimes in disadvantaged communities, they don't have this vast network of accredited investors to go to. 

“They don't know how to access the SEC and they certainly don’t have time or money to spend working with the SEC on regulation. They have a business to grow and they need to have access to their friends and family. 

“Mr. Speaker, I urge our colleagues to support this bill and I yield.”

Details on the bill can be found here.

 

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