ASA Applauds Passage of Bipartisan Capital Formation Legislation
WASHINGTON, D.C. – The American Securities Association (ASA) issued the following statement from President and CEO Chris Iacovella on the passage of capital formation legislation today by the U.S. House of Representatives:
"U.S. capital markets are the envy of the world and are a critical source of financing for small businesses across America. The bipartisan passage of today’s legislation sends a strong message to the SEC that improving access to capital for small businesses is a high priority for Congress,” said ASA President and CEO Chris Iacovella. “We commend Chairman Patrick McHenry (R-NC), Rep. Ann Wagner (R-MO), and Rep. Gregory Meeks (D-NY) and their staffs for helping America’s small businesses access the capital they need to create jobs and grow the American economy.”
ASA continues to support the following legislation:
H.R. 2608 which would establish that an Emerging Growth Company (EGC), as well as any issuer that went public using EGC disclosure obligations, only needs to provide two years of audited financial statements.
H.R. 2610 which would update emerging growth company (EGC) financial statement requirements to clarify that an EGC may present two years, rather than three years, of audited financial statements in both IPOs and spin-off transactions. The bill allows a spin-off of an EGC to benefit from the two-year financial statement accommodation, which is currently only available during an IPO.
H.R. 2793- the Encouraging Public Offerings Act which would codify Rule 163B under the Securities Act by allowing an issuer to communicate with potential investors to determine interest in a securities offering, either before or after the filing of a registration statement (i.e. test the waters).