Representative Mike Haridopolos (R-FL) is introducing his first piece of legislation, aiming to encourage the growth of small businesses.
Specifically, the Greenlighting Growth Act cuts regulations and updates outdated finance reporting laws, addressing an issue arising from the 2012 JOBS Act.
The JOBS Act introduced an "Emerging Growth Company" (EGC) category for business taxes, defined as companies with less than $1.235 billion in annual revenue. This category allows companies to go public with a simpler Securities and Exchange Commission (SEC) filing system. The issue, however, is that when companies try to expand via acquisitions, the SEC will require large quantities of data that effectively render the ECG status redundant.
Rep. Haridopolos's bill preserves ECG benefits for businesses that grow via acquisition, including limiting the required financial data turned over to the SEC to the past two years.
"Emerging Growth Companies are an engine of innovation and job creation across this country," the Florida Congressman said in his press release, adding, "This targeted legislation removes a needless roadblock and sends a clear message that we're committed to smart reforms that reward innovation, fuel growth, and keep America the best place in the world to start and scale a business."
Haridopolos further stated, "America's small and mid-sized innovators shouldn't be penalized for seeking to grow through acquisitions."
"This bill keeps the rules clear and consistent so that these firms can raise capital and expand without being held back by red tape that the JOBS Act was never meant to impose," Haridopolos concluded.
The Florida Congressman previously spoke in favor of the Protect Small Businesses from Excessive Paperwork Act in late February. This act cuts back on complex financial reporting requirements from the Corporate Transparency Act (CTA), which sought to counter money laundering via shell companies.
"Many small businesses run on slim margins and are now facing added hardships due to the last Administration's carelessness in implementing these reporting requirements," The District 8 Representative said.
