Today, the U.S. House passed the Jumpstart Our Businesses (JOBS) Act, H.R. 3606, with strong bipartisan support (390-23). Passage of the legislation will help expedite U.S. Senate action on this critical capital formation package, according to the Small Business & Entrepreneurship Council (SBE Council).
President Barack Obama was supportive of the legislation's passage, and Senate Majority Leader Harry Reid (D-NV) has pledged to move forward on a similar package. SBE Council, a leading advocacy and research organization dedicated to promoting entrepreneurship, has been advocating for many elements of the JOBS Act for the past year. The group praised the bipartisan collaboration that fashioned the legislation and guided it through the House.
"Access to capital remains a daunting challenge for small to mid-size firms at all stages of development and growth. The JOBS Act addresses a number of smart reforms that will boost capital formation and funding opportunities for small businesses. The legislation provides regulatory flexibility and relief from rigid and costly regulations for small firms, while modernizing outdated laws that restrict investment and capital formation," said SBE Council President & CEO Karen Kerrigan.
In a KEY VOTE letter to all U.S. House Members, SBE Council wrote: "Without adequate sources of capital, the economy will continue to underperform, and the recovery will remain less than robust. Healthy entrepreneurship requires access to capital, yet funding streams remain cautious, locked or tentative. Entrepreneurs need solutions that will create options for accessing capital. The JOBS Act offers such solutions."
The JOBS Act bundled an array of legislative measures focused on helping to increase business startups, and accelerate the growth of existing firms. SBE Council supported all the measures, including the crowdfunding piece of H.R. 3606, which will enable new platforms for raising capital. On these transparent platforms, investors will dynamically engage with other investors to vet business ideas and fund those businesses with significant promise. The platforms will operate under a new, and transparent, regulatory framework.
As SBE Council noted in its KEY VOTE letter: "Crowdfund investing will allow entrepreneurs who lack access to funding networks the opportunity to bring their business ideas directly to investors. Americans will have the opportunity to invest in small businesses in their local communities, or support entrepreneurs in rural or urban areas where business formation is critical to sustaining those communities." The platforms will protect investors by utilizing proven technologies, sensible regulation and tapping into 'the sunshine' of social media.
On March 6, the Senate Banking Committee hosted a hearing on the capital access bills. SBE Council is encouraging the Senate leadership of both parties to move quickly on package of bills.
"Economic conditions remain fragile, and rising gas prices have the potential to undermine the economic gains that have been made to date. The package of capital formation bills will provide a needed boost to business confidence, while offering meaningful solutions to entrepreneurs who are strapped for capital. We urge the Senate to move quickly," said Kerrigan.
On to the Senate!
Showing posts with label Harry Reid. Show all posts
Showing posts with label Harry Reid. Show all posts
Thursday, March 08, 2012
Wednesday, February 29, 2012
Small Business Groups Urge U.S. Senate Leaders to Advance Crowdfunding Legislation
A coalition of the nation's most influential organizations representing small business owners and entrepreneurs is urging U.S. Senate leaders to work together to bring crowdfund investing legislation to the Senate floor for a vote. In a letter addressed to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), the groups note that crowdfund investing legislation passed the U.S. House 407-17, and President Barack Obama has expressed his support for the legislation through a Statement of Administration Policy as well as in his Startup Legislative agenda recently delivered to Capitol Hill.
(READ THE LETTER BY CLICKING HERE.)
Crowdfund investing platforms will allow entrepreneurs who lack access to funding networks the opportunity to bring their business ideas directly to investors through regulated, online platforms. As the groups note in the letter, "Americans will have the opportunity to invest in small businesses in their local communities, or support entrepreneurs in rural areas where business formation is critical to sustaining those communities." The letter points out that capital access remains a serious challenge for startups and growth-oriented businesses, and without "adequate sources of capital, the economy will continue to underperform, and the recovery will remain less than robust." Funding streams "remain cautious, locked or tentative," write the groups.
Two crowdfund investing bills have been introduced in the U.S. Senate. Majority Leader Reid announced yesterday that the U.S. Senate will address the package of capital formation bills that overwhelmingly passed the U.S. House. With respect to crowdfund investing legislation, state regulators have engaged in a campaign of "fear and fraud," which has deprived Senators from learning the facts about how crowdfunding currently works through gift-based platforms, and how technology -- and a new regulatory framework - will play a central role in rooting out potentially bad actors on crowdfund investing platforms.
As the groups note in their letter:
"On these platforms, investors will dynamically engage with other investors to vet business ideas and fund those businesses that have significant promise. Crowdfund investing platforms will be open and transparent, and operate under a new regulatory framework. The platforms will protect investors by utilizing proven technologies and tap into 'the sunshine' of social media. This is what has made gift-based crowdfunding so successful, and why crowdfund investing has been a major success in other parts of the world. Entrepreneurs looking to raise capital will be required to provide significant financial information to potential investors, as well as withstand the scrutiny of the crowd in regards to the feasibility of their business plans and models."
The small business groups are optimistic about the legislation's fate. In the letter, they communicate a belief that "a consensus is achievable for advancing legislation that enables effective crowdfund investing platforms for small businesses while protecting investors." Majority Leader Reid said the Senate Banking Committee will hold an additional hearing on the package of capital access bills next week, which the groups hope will include expert witnesses on crowdfunding so that Senators can be properly informed about existing platforms, and how the new space will protect investors.
The groups underscore the importance of the need to work together to enact solutions that will help small business owners invest, grow and create jobs "Capital is the lifeblood of our economy, and without it small business owners and entrepreneurs simply cannot generate the new jobs, breakthrough innovations and economic impact that are necessary for bringing our nation back to sustained growth," the groups conclude in the letter.
The letter was signed by Harry Alford, President & CEO, National Black Chamber of Commerce; Kristie Arslan, President & CEO, National Association for the Self-Employed; Roger Campos, President & CEO, Minority Business Roundtable; Allen Gutierrez, National Executive Director, The Latino Coalition; Barbara Kasoff, President & CEO, Women Impacting Public Policy (WIPP); Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council; and Todd McCracken, President, National Small Business Association.
Karen Kerrigan, President & CEO
(READ THE LETTER BY CLICKING HERE.)
Crowdfund investing platforms will allow entrepreneurs who lack access to funding networks the opportunity to bring their business ideas directly to investors through regulated, online platforms. As the groups note in the letter, "Americans will have the opportunity to invest in small businesses in their local communities, or support entrepreneurs in rural areas where business formation is critical to sustaining those communities." The letter points out that capital access remains a serious challenge for startups and growth-oriented businesses, and without "adequate sources of capital, the economy will continue to underperform, and the recovery will remain less than robust." Funding streams "remain cautious, locked or tentative," write the groups.
Two crowdfund investing bills have been introduced in the U.S. Senate. Majority Leader Reid announced yesterday that the U.S. Senate will address the package of capital formation bills that overwhelmingly passed the U.S. House. With respect to crowdfund investing legislation, state regulators have engaged in a campaign of "fear and fraud," which has deprived Senators from learning the facts about how crowdfunding currently works through gift-based platforms, and how technology -- and a new regulatory framework - will play a central role in rooting out potentially bad actors on crowdfund investing platforms.
As the groups note in their letter:
"On these platforms, investors will dynamically engage with other investors to vet business ideas and fund those businesses that have significant promise. Crowdfund investing platforms will be open and transparent, and operate under a new regulatory framework. The platforms will protect investors by utilizing proven technologies and tap into 'the sunshine' of social media. This is what has made gift-based crowdfunding so successful, and why crowdfund investing has been a major success in other parts of the world. Entrepreneurs looking to raise capital will be required to provide significant financial information to potential investors, as well as withstand the scrutiny of the crowd in regards to the feasibility of their business plans and models."
The small business groups are optimistic about the legislation's fate. In the letter, they communicate a belief that "a consensus is achievable for advancing legislation that enables effective crowdfund investing platforms for small businesses while protecting investors." Majority Leader Reid said the Senate Banking Committee will hold an additional hearing on the package of capital access bills next week, which the groups hope will include expert witnesses on crowdfunding so that Senators can be properly informed about existing platforms, and how the new space will protect investors.
The groups underscore the importance of the need to work together to enact solutions that will help small business owners invest, grow and create jobs "Capital is the lifeblood of our economy, and without it small business owners and entrepreneurs simply cannot generate the new jobs, breakthrough innovations and economic impact that are necessary for bringing our nation back to sustained growth," the groups conclude in the letter.
The letter was signed by Harry Alford, President & CEO, National Black Chamber of Commerce; Kristie Arslan, President & CEO, National Association for the Self-Employed; Roger Campos, President & CEO, Minority Business Roundtable; Allen Gutierrez, National Executive Director, The Latino Coalition; Barbara Kasoff, President & CEO, Women Impacting Public Policy (WIPP); Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council; and Todd McCracken, President, National Small Business Association.
Karen Kerrigan, President & CEO
Monday, November 07, 2011
Senate Moves on 3% Withholding Tax Repeal Today
Today, the U.S. Senate will vote on a motion to proceed to a House-passed bill (H.R. 674) which repeals the costly and onerous 3% withholding tax on government contractors. The motion is expected to pass (60 votes needed), but there could be changes to the bill regarding its "pay for."
We've heard that Senator Harry Reid (D-NV) may tax "private jet owners" to pay for the repeal bill. This is silly as such a tax would hurt general aviation -- which is dominated by small businesses. Many small firms and organizations in rural areas also use small planes to conduct important/day-to-day business.
The bottom line is that the House-passed bill overwhelmingly advanced by a vote of 405-16. President Obama also supports the bill. Why the heck would Harry Reid hold it up?
SBE Council sent a letter to the Senate today urging quick passage. SBE Council President & CEO Karen Kerrigan wrote:
"Repealing the 3 percent withholding tax makes economic and fiscal sense. The cost of the withholding mandate to governments will far exceed its anticipated revenue gains. Furthermore, small firms will become less able to compete for government contracts due to the anticipated cash flow issues, higher costs and the bidding constraints that the mandate will produce.
"Repealing this counterproductive mandate will help small contractors preserve capital. In addition, governments at all levels will be allowed to save precious funds currently being expended or allocated to establish bureaucracies for implementing this unnecessary mandate. SBE Council members have reported that the mandate will create serious cash flow issues for their firms, and prevent many from bidding on government contracts. Some have reported they will raise prices in order to cover the cost of the mandate. In the end, taxpayers will lose.
"Repealing the 3 percent withholding mandate makes economic and fiscal sense. With the cost of the mandate far exceeding anticipated revenue gains, and small firms becoming less able to compete for government contracts because of new cost and regulatory constraints, repealing the mandate makes sense. Taxpayers, small businesses and governments at all levels will benefit from repeal."
Indeed the time is now for the Senate to get moving! To start acting on some of these House-passed bills to help entrepreneurs! You may want to give your Senators a nudge at 202-224-3121. Tell them to pass H.R. 674 without changes!
We've heard that Senator Harry Reid (D-NV) may tax "private jet owners" to pay for the repeal bill. This is silly as such a tax would hurt general aviation -- which is dominated by small businesses. Many small firms and organizations in rural areas also use small planes to conduct important/day-to-day business.
The bottom line is that the House-passed bill overwhelmingly advanced by a vote of 405-16. President Obama also supports the bill. Why the heck would Harry Reid hold it up?
SBE Council sent a letter to the Senate today urging quick passage. SBE Council President & CEO Karen Kerrigan wrote:
"Repealing the 3 percent withholding tax makes economic and fiscal sense. The cost of the withholding mandate to governments will far exceed its anticipated revenue gains. Furthermore, small firms will become less able to compete for government contracts due to the anticipated cash flow issues, higher costs and the bidding constraints that the mandate will produce.
"Repealing this counterproductive mandate will help small contractors preserve capital. In addition, governments at all levels will be allowed to save precious funds currently being expended or allocated to establish bureaucracies for implementing this unnecessary mandate. SBE Council members have reported that the mandate will create serious cash flow issues for their firms, and prevent many from bidding on government contracts. Some have reported they will raise prices in order to cover the cost of the mandate. In the end, taxpayers will lose.
"Repealing the 3 percent withholding mandate makes economic and fiscal sense. With the cost of the mandate far exceeding anticipated revenue gains, and small firms becoming less able to compete for government contracts because of new cost and regulatory constraints, repealing the mandate makes sense. Taxpayers, small businesses and governments at all levels will benefit from repeal."
Indeed the time is now for the Senate to get moving! To start acting on some of these House-passed bills to help entrepreneurs! You may want to give your Senators a nudge at 202-224-3121. Tell them to pass H.R. 674 without changes!
Monday, August 01, 2011
SBE Council's Statement on the Debt Ceiling Compromise
SBE Council President & CEO Karen Kerrigan released a statement today urging Congress to advance the revised "Budget Control Act of 2011" -- otherwise known as the debt ceiling compromise bill. Kerrigan said the deal will help put the economy on a more stable path by avoiding a debt crises, reducing government spending and not raising taxes on entrepreneurs, investors and risk-takers.
“The first step to boosting confidence among small business owners is to eliminate key threats that have been fueling uncertainty. The revised Budget Control Act of 2011 does not include tax increases, which is a significant plus for entrepreneurs who remain anxious about Washington taking more of their scarce capital. This is an essential part of the compromise, as small business owners need their every penny to survive the tumultuous economic period,” said Kerrigan.
“For the mid to long-term, moving towards lasting spending reform is critical to stabilizing taxes. The agreement forces Washington to focus on spending restraint, rather than turning to private businesses and entrepreneurs to provide ‘a fix’ for its overspending. Moreover, averting a debt crises will allow Congress and President Obama to focus on other reforms – like regulatory relief, opening new markets abroad, and fixing the disastrous new health care law -- all of which need to be addressed if we want businesses to invest and create jobs,” Kerrigan concluded.
SBE Council will also send a letter to every Member of the House and Senate to urge that they vote "YES" for the bipartisan deal.
SBE Council Staff
“The first step to boosting confidence among small business owners is to eliminate key threats that have been fueling uncertainty. The revised Budget Control Act of 2011 does not include tax increases, which is a significant plus for entrepreneurs who remain anxious about Washington taking more of their scarce capital. This is an essential part of the compromise, as small business owners need their every penny to survive the tumultuous economic period,” said Kerrigan.
“For the mid to long-term, moving towards lasting spending reform is critical to stabilizing taxes. The agreement forces Washington to focus on spending restraint, rather than turning to private businesses and entrepreneurs to provide ‘a fix’ for its overspending. Moreover, averting a debt crises will allow Congress and President Obama to focus on other reforms – like regulatory relief, opening new markets abroad, and fixing the disastrous new health care law -- all of which need to be addressed if we want businesses to invest and create jobs,” Kerrigan concluded.
SBE Council will also send a letter to every Member of the House and Senate to urge that they vote "YES" for the bipartisan deal.
SBE Council Staff
Subscribe to:
Posts (Atom)