U.S. Rep. Blaine Luetkemeyer (MO-9) continues to support legislation that removes the regulatory obstacles standing in the way of job creation, and this week voted in favor of two bills passed by the House to help the nation’s small businesses grow and facilitate job creation.

“While Washington does not create jobs, it can create an environment that stifles our nation’s job creators -- and that must be stopped. Washington needs to work with job creators by passing pro-growth, pro-jobs policies,” Luetkemeyer said. “This legislation is another step we are taking in the House to help unleash America’s pent-up entrepreneurial spirit by removing regulatory obstacles facing our nation’s small businesses.”  

The Access to Capital for Job Creators Act removes a Securities and Exchange Commission’s (SEC) regulation that prevents small, privately held companies from using advertisements to solicit investors. The current SEC regulation allows small companies to raise capital as long as they do not market their securities through general solicitations or advertising, which has been interpreted to mean that potential investors must have an existing relationship with the company. The current SEC ban limits the ability of small companies to raise capital, which hinders their ability to invest in their business and create much-needed jobs for American families.

The Entrepreneur Access to Capital Act removes SEC restrictions on crowdfunding so entrepreneurs can raise capital from a large pool of small investors who may or may not be considered “accredited” by the SEC. Crowdfunding is a technique that raises money to fund a business through relatively small dollar contributions from a large number of people either in person or on the Internet.  Currently the SEC prohibits crowdfunding. This legislation allows new businesses to accept and pool donations up to $5 million without having to register with the SEC.

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