[Congressional Record Volume 159, Number 168 (Friday, November 22, 2013)]
[Extensions of Remarks]
[Page E1756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   THE IMPROVING ACCESS TO CAPITAL FOR EMERGING GROWTH COMPANIES ACT

                                 ______
                                 

                        HON. STEPHEN LEE FINCHER

                              of tennessee

                    in the house of representatives

                       Friday, November 22, 2013

  Mr. FINCHER. Mr. Speaker, I rise today to introduce the Improving 
Access to Capital for Emerging Growth Companies Act with the gentleman 
from Maryland, Congressman John Delaney. This legislation builds upon 
the success of the original bi-partisan JOBS Act, which was enacted 
into law in 2012. It focuses on making improvements to the initial 
public offering (IPO) process for a new category of issuers known as 
``emerging growth companies,'' or EGCs.
  Since the passage of the JOBS Act in April 2012, which established 
the EGC category in Title I, more than 200 companies have registered 
with the SEC as EGCs. At the one year anniversary of the JOBS Act, a 
study by Ernst & Young showed that, ``Approximately 78 percent of all 
publicly filed IPO registration statements and approximately 83 percent 
of the IPOs that went effective since April 2012 were filed by EGCs.'' 
Since passage last year, Title I of the JOBS Act has clearly been a 
tremendous success, affording more companies the opportunity to go 
public and create jobs for hardworking Americans.
  While this JOBS Act provision has been successful, more can be done 
to improve the process of going public for EGCs. The Improving Access 
to Capital for Emerging Growth Companies Act would reduce the number of 
days EGCs must have a confidential registration statement on file with 
the SEC from 21 days to 15 days and allow a one year grace period for 
an issuer that began the IPO process as an EGC to complete its IPO as 
an EGC. This legislation also clarifies financial disclosure 
requirements for EGCs and allows an EGC to confidentially submit a 
proposal to the SEC for a follow-on offering.
  These are simple, technical improvements to the JOBS Act that improve 
the IPO process and allow EGCs to continue growing and providing jobs 
for Americans. Mr. Speaker, I want to emphasize that job creation is 
the most important reason to pass this legislation quickly. More 
companies going public leads to more expansion and investment, which 
will lead to job creation. The gentleman from Maryland, Mr. Delaney, 
and I are pleased to be introducing this bill today.