WASHINGTON, D.C.—Senator John Thune today sent a follow up letter to the Senate Banking Committee urging consideration of his Access to Capital for Job Creators Act (H.R. 2940/S.1831), following President Obama’s State of the Union address in which he called for such legislation to be passed and sent to his desk.
“I was pleased to hear President Obama echo the call during the State of the Union address that many of us have made for increased access to capital for small businesses,” said Thune. “In November, I introduced a bill that would remove an unnecessary Securities and Exchange Commission barrier that is currently preventing small businesses from accessing much-needed capital. Despite passing the House of Representatives by a strong bipartisan vote of 413-11, this job-creating legislation has been stalled in the Senate. I hope the Senate Majority will listen to the president’s call for access to capital legislation and swiftly pass my common-sense bill.”
The full text of Thune’s letter is included below.
January 25, 2012
Dear Chairman Johnson and Ranking Member Shelby:
In President Obama’s State of the Union address last night, he called on Congress to pass legislation that will help start-ups and small businesses access capital in order to expand and create jobs. The Access to Capital for Job Creators Act (H.R. 2940/S.1831) passed the House of Representatives in November of 2011, and awaits action by the Senate. I again respectfully request that the Committee schedule a mark-up to consider this common-sense legislation and for you to urge Senate Majority Leader Reid to schedule floor action on this measure by the end of the current work period – February 17, 2012.
In the president’s address, he stated that “most new jobs are created in start-ups and small businesses. So let’s pass an agenda that helps them succeed. Tear down regulations that prevent entrepreneurs from getting the financing to grow…Both parties agree on these ideas. So put them in a bill, and get it on my desk this year.”
Helping small businesses and start-ups succeed by removing a roadblock to accessing much-needed capital is precisely what this legislation would do. The Securities and Exchange Commission’s (SEC) general solicitation prohibition severely hampers the ability of small businesses to raise capital. In fact, on January 6, 2012, the SEC’s Advisory Committee on Small and Emerging Companies agreed and recommended that the agency “relax or modify” the general solicitation prohibition.
This legislation passed in the House of Representatives on November 3, 2011, by a strong bipartisan vote of 413-11. I believe we can reach a similar bipartisan agreement for this legislation in the Senate as well. I therefore respectfully request that the Committee take action on this bipartisan legislation, which would help the nation’s small businesses and entrepreneurs succeed.
United States Senate