[Congressional Record Volume 158, Number 37 (Wednesday, March 7, 2012)]
[House]
[Page H1215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
JOBS ACT
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Michigan (Mr. Huizenga) for 5 minutes.
Mr. HUIZENGA of Michigan. Mr. Speaker, I appreciate the opportunity
to address the House and to address the Nation today.
As a small business owner, I know the importance of fostering and
creating an environment that promotes job creation, economic security
and opportunity, and allows especially small businesses to grow.
I also know that Americans and Michiganders and those in the Second
District in my home State of Michigan and across the country are
looking for real solutions that will grow jobs now. That's why I
support the JOBS Act. It will jump-start our economy and restore
opportunities for America's primary job creators: our small businesses,
start-ups, and entrepreneurs.
Now, I've been around long enough in my first year here, Mr. Speaker,
to unfortunately see that sometimes you have to repackage ideas and put
a different colored bow on it for people to accept it because what
we're going to be passing has been passed. I sit on the Financial
Services Committee. We've passed a number of these bills--and all of
these bills, I believe. That's part of the America's Job Creators Plan
that the House Republicans have put forward. But what we're doing today
is we are going to be putting this JOBS Act; it's compromised of six
bills that have been approved by the committee. Very quickly, those six
bills are:
One, Reopening the American Capital Markets to Emerging Growth
Companies Act. What that's going to do is it's going to allow temporary
relief from some of the onerous SEC, or Securities and Exchange
Commission, regulations that are on those small businesses.
Number two, the Access to Capital for Job Creators Act is going to
allow small companies to raise capital by, again, removing some of
those regulatory bans that are in there and that say that a small
business can't use advertisements to go try to get and attract
investors. Well, in an age of Internet and those kinds of things, that
has a huge impact. It also brings along a concept that's been out there
called crowdfunding.
That's the third bill, Entrepreneur Access to Credit Act. It is also
going to ease the requirements that allow things like crowdfunding,
people being able to go and spread this out on Facebook and Twitter and
Internet and to their friends, to pull in those small-dollar investors
that are going to be able to give them the capital that they need to
launch that innovative idea.
Well, the fourth is the Small Company Capital Formation Act. It
allows small businesses to go public by elevating the threshold that
companies are exempt from $5 million to $50 million. That is going to
be able to really, truly impact those small entrepreneurs and small
business owners who are looking to take their business to the next
step.
The fifth one is the Private Company Flexibility and Growth Act.
That's expected to give small companies more room to grow before having
to go public. Currently, there's a regulation that says you can have no
more than 500 investors in your small company. This doubles that. This
says you can have up to 1,000. We believe that that is also going to be
able to allow those small businesses who are in transition, who are in
that acquisition mode, who are in that growth mode, to be able to go up
there and be successful.
Finally, number six, the Capital Expansion Act would increase the
number of shareholders allowed to invest in a community bank from 500
to 2,000. Why would we include this part? Well, community banks really
are the backbone of many of those small investors. They're the ones
that they go to church with and shop at the grocery store with. They
know their businesses. They may know that it's been a long-term
relationship with that local community bank. By being able to expand
the footprint of those community banks, we're going to be able to
expand their lending power as well to those small businesses.
Well, it's interesting that here we actually have a bipartisan
package of bills. This isn't just something that's the Republicans'
ideas. In fact, in the Financial Services Committee, we had this as
bipartisan votes. And really, it truly is going to help create a
healthier environment for small businesses to hire and expand.
{time} 1040
In fact, President Obama's administration released what's called a
Statement of Administration Policy yesterday supporting this very act.
We welcome his support and recognition of this bill's innovative
solutions to ensure that small businesses can access capital needed to
expand, hire, and invest. And again, that's because you, the American
people, we here in the House of Representatives are looking for those
real honest solutions.
Well, it's far time that we get government out of the way of small
businesses as well, the engine of our economy. We need to focus on the
real economy, and our priority has to be that focus.
According to the Kauffman Foundation, start-up companies created
nearly 40 million jobs, 40 million jobs since 1980, and the Small
Business Administration shows small businesses generate over 60 percent
of all the new jobs created here in the U.S. Sixty percent of all those
jobs that we are hoping to have in this country are created by these
small businesses.
In fact, even the World Bank has a report. It's called ``Doing
Business,'' and it showed that the United States has fallen to 13th for
the ``ease of starting a business.''
So with that, Mr. Speaker, I appreciate this as a key to lasting,
honest economic recovery. And we need--America needs--these real jobs,
real solutions, and real results right now.
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