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The House Financial Services Committee this week approved a package of legislation designed to help small manufacturers access the capital necessary to invest in R&D, equipment purchases and job creation.

The big picture: For small manufacturers, capital formation is a big challenge, the NAM told the committee in advance of the markup. Access to capital helps these manufacturers invest in new product lines, expand production capabilities, increase R&D spending and enhance hiring and worker benefits.

What to do: The NAM called on lawmakers to pass legislation to build on the Jumpstart Our Business Startups Act of 2012, which made it easier for small and growing companies to access America’s world-leading capital markets. The NAM expressed support for bills that would reduce regulatory burdens, allow wider investor participation in private offerings and make the IPO process easier.

The bills: The committee approved several NAM-supported bills, including:

• The Helping Startups Continue to Grow Act, introduced by Rep. Bryan Steil (R-WI), which would decrease the regulatory burdens on newly public companies and grant them extended flexibility to adjust to the public markets;
• The Greenlighting Growth Act, introduced by Rep. Mike Haridopolos (R-FL) with Rep. Ann Wagner (R-MO), which would ease backward-looking disclosure burdens on newly public companies;
• Two bills to make it easier for small companies to consider their capital raising options and undertake an IPO: one introduced by Rep. Zach Nunn (R-IA) and another introduced by Rep. Wagner with Reps. Gregory Meeks (D-NY) and Pete Sessions (R-TX);
• The Small Entity Update Act, introduced by Rep. Wagner with Reps.Sessions, Ritchie Torres (D-NY), Sean Casten (D-IL) and David Scott (D-GA), which would require the Securities and Exchange Commission to ensure that small businesses benefit from tailored regulatory requirements that support capital formation and growth;
• The Middle Market IPO Underwriting Cost Act, introduced by Rep. Jim Himes (D-CT), which would require a report on the costs encountered by small and medium-sized companies when undertaking public offerings; and
• Three different bills to expand investor access to private offerings, which can provide critical capital for privately held manufacturers: one introduced by Rep. Mike Flood (R-NE) with Reps. Cleo Fields (D-LA), Mike Lawler (R-NY), Sarah McBride (D-DE) and Shri Thanedar (D-MI); another introduced by Rep. Bill Huizenga (R-MI); and a third introduced by Chairman French Hill (R-AR).

The last word: “Manufacturers commend the Financial Services Committee for approving these important bills, which will ensure that America’s capital markets support business growth and job creation at manufacturers across the country,” said NAM Managing Vice President of Policy Charles Crain.