Measure Intended to Increase Small Business Access to Investment Capital

WASHINGTON, D.C. – U.S. Senators Thad Cochran (R-Miss.) and Roger Wicker (R-Miss.) today voted for Senate passage of bipartisan legislation written to improve the ability of small businesses to access investment capital by, among other things, easing federal regulatory requirements.

The Mississippi Senators voted with a majority of Senators to approve the Jumpstart Our Business Startups (JOBS) Act. The bill passed on a 73-26 vote. The legislation, HR.3606, will be returned to the House of Representatives for final approval before being sent to the President, who has signaled his support for the measure.

“Mississippi, like many states, continues to struggle through a slow economic recovery and an unemployment rate that remains unacceptably high. This legislation has been written to help foster job creation and investment. It opens up new opportunities for small businesses to raise capital and it eases some of the federal reporting requirements that create hurdles to small business growth,” Cochran said.

“Mississippi’s small businesses have been particularly hard hit by our economic downturn, but they remain critical to job creation,” said Wicker. “Small businesses need access to reliable capital to grow and create new opportunities. The JOBS Act has bipartisan support and should help to cut through some of the red tape that has hampered small businesses.”

The JOBS Bill is comprised of several employment and economic development-related bills introduced in the House and Senate during the 112th Congress. In general, the measure will increase the availability of capital for small companies, streamline opportunities for “crowdfunding” (investment capital provided by numerous small contributors who purchase stock in small and growing companies), and reduce Securities and Exchange Commission (SEC) reporting requirements for small business capital formation.

Last November, Cochran and Wicker cosponsored the Access to Capital for Job Creators Act (S.1831). Its House companion bill (HR.2940) is among the measures incorporated into the JOBS Act. These provisions will permit the use of general advertisements by small businesses to find investors. They provide some exemption from SEC registration requirements.