Input Stories

The bipartisan Incentivizing New Ventures and Economic Strength Through Capital Formation Act will build upon past legislative successes to “ensure that America’s public capital markets support business growth and job creation at small manufacturers across the country,” the NAM told U.S. House leadership recently.

What’s going on: The House of Representatives on Thursday voted 302–123 to approve the INVEST package, following advocacy by the NAM and others.

• The more than 20 bills in the package previously advanced out of the House Committee on Financial Services, where they received strong support during markups from Republican and Democratic members alike.

What’s in it: The NAM strongly supports the following measures in the INVEST Act:

• Section 105 (Advocating for Small Business), to establish Offices of Small Business in the Securities and Exchange Commission’s Corporation Finance, Investment Management and Trading and Markets divisions
• Section 106 (Small Entities), to direct the SEC to conduct a study and rulemaking on the definition of ‘‘small entity’’ under the securities laws and direct the agency to consider small business impacts in future rulemakings
• Sections 201 and 203 (Expand Eligibility for Accredited Investor Status), to expand ways individual investors may qualify as “Accredited Investors” through a new exam, professional or educational credentials or inflation-adjusted net worth or income tests
• Sections 301 and 303 (Encouraging IPOs), to reduce registration requirements by allowing emerging growth companies to submit two years of audited financial statements instead of three and to direct the SEC to expand access to its testing-the-waters provisions to promote IPOs
• Section 305 (Middle Market IPO Cost), to direct the comptroller general to prepare a report on costs encountered by small and medium-sized companies during public offerings
• Section 306 (Expanding Well-Known Seasoned Issuer Eligibility), to enable smaller companies to qualify for WKSI status by decreasing the minimum market value threshold from $700 million to $400 million

The last word: “Manufacturers thank House Financial Services Committee Chairman Rep. French Hill (R-AR), Rep. Ann Wagner (R-MO), Rep. Gregory Meeks (D-NY) and Rep. Josh Gottheimer (D-NJ) for their leadership on the INVEST Act. This bipartisan legislation will reduce regulatory burdens and enhance capital formation for the small and medium-sized manufacturers that fuel our economy,” the NAM wrote following the vote.