Tuesday, January 31, 2012
Sen. Toomey Commends President For Supporting His Capital Formation Bills
U.S. Senator Pat Toomey (R-Pa.) commended President Obama for sending his Startup America Legislative Agenda to Congress today, which includes two of the three bipartisan capital formation bills Sen. Toomey has introduced.
In September, Sens. Toomey and Jon Tester (D-Mont.) introduced the Small Company Capital Formation Act (S. 1544), which would cut regulatory burdens on small businesses and make it easier for them to raise much-needed capital through public offerings. The bill changes the Securities and Exchange Commission rule known as "Regulation A" to allow companies to sell as much as $50 million in shares without filing lengthy paperwork. Currently, businesses can only raise $5 million under Regulation A - a limit many businesses consider insufficient. The limit has not been changed in nearly 20 years.
In December, Sens. Toomey and Chuck Schumer (D-N.Y.) introduced the Reopening American Capital Markets to Emerging Growth Companies Act (S. 1933). The Schumer-Toomey bill would make it easier for growing firms to go public by reducing the hurdles of an initial public offering by phasing in many of the costliest obligations over time while maintaining key investor protections
"I am heartened by the president's embrace of these job-creating capital formation bills," Sen. Toomey said. "In our struggling economy, quicker entry into the market will help small companies expand, hire new workers and create thousands of new jobs. The legislation I have offered with Sens. Tester and Schumer have wide bipartisan support and I hope to work with the president and my congressional colleagues to pass them as soon as possible."