Congress IS Debating Latest JOBS ActBy
The JOBS and Investor Confidence Act of 2018 passed by the U.S. House of Representatives in July contains a number of changes from the version of the bill passed by the Senate, which now must decide whether to accept the House version.
Included among its many provisions is a requirement that the U.S. Securities & Exchange Commission (SEC) provide Congress with a cost-benefit analysis of the use of Form 10-Q by emerging growth companies (EGC). The report must include the costs and benefits to investors under the current reporting requirements as well as the expected impact of EGCs using alternative quarterly reporting.
While the Trump administration generally supports the bill, it released a statement when the House passed its version on July 17 by a vote of 406-4, saying, “The Administration will work with Congressional leaders to make several technical and substantive changes to the legislation with the goal of presenting final legislation to the President as soon as possible.”
The pending bill also includes provisions to ease regulations on “angel investors” and expand the definition of “accredited investors” to make it easier for start-up companies and small businesses to attract investments to grow and create jobs. It also aims to make it easier for companies to go public by extending on-ramp exemptions for EGCs to give them more time to financially sustain costs and requirements associated with full compliance.
Tom Quaadman, executive vice president of the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC), says, “This bipartisan legislation will help small and mid-size businesses raise the capital they need to expand, innovate, and hire new employees.”