BIO Applauds House for Passing Legislation to Enhance Small Businesses’ Voice at the SEC
Washington, D.C. (February 2, 2016) – Today, the Biotechnology Innovation Organization (BIO) applauds the House of Representatives for approving the SEC Small Business Advocate Act (H.R. 3784) and the Small Business Capital Formation Enhancement Act (H.R. 4168). These bills would enhance the role that small businesses play in the decision-making process at the Securities and Exchange Commission (SEC), ensuring that SEC policies support the growth of emerging biotech innovators.
The SEC Small Business Advocate Act would establish an Office of the Small Business Advocate at the SEC in order to facilitate small business capital formation and ensure that the SEC takes into account the impact of regulatory burdens on growing companies as it considers new compliance requirements. The Small Business Capital Formation Enhancement Act would require the SEC to review the proposals made by the SEC Government-Business Forum on Small Business Capital Formation, an annual gathering that has in the past recommended policies such as the IPO On-Ramp, Regulation A+, and Regulation D reforms found in the Jumpstart Our Business Startups (JOBS) Act.
The following statement may be attributed to Cartier Esham, BIO’s Executive Vice President of Emerging Companies:
“Involving small businesses in the regulatory process would ensure that the SEC considers the effect that its rules have on growing companies across the country. Overly burdensome compliance requirements have an inordinate impact on small businesses, and the SEC Small Business Advocate Act and the Small Business Capital Formation Enhancement Act would help the SEC move away from one-size-fits-all rules.
“The JOBS Act has supported more than 180 biotech IPOs, and these bills will build upon its success. The existing Government-Business Forum and the proposed Office of the Small Business Advocate would be a vital source of new policy ideas that would incentivize and facilitate capital formation, supporting the search for the next generation of medical breakthroughs.”
BIO testified in support of the SEC Small Business Advocate Act and the Small Business Capital Formation Enhancement Act at a House Capital Markets Subcommittee hearing in December 2015.
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