| November 2, 2011
KEY VOTE: H.R. 2930, "Entrepreneurs Access to Capital Act"
Dear Member of the U.S. House of Representatives:
On behalf of the Small Business & Entrepreneurship Council (SBE Council) and its 100,000 members nationwide, I am writing to express our strong support for the "Entrepreneurs Access to Capital Act" (H.R. 2930). This legislation is a common sense step in opening up new avenues for small businesses to gain the capital needed to innovate, expand and create jobs.
Indeed, this is such a critical vote for our nation's small businesses that SBE Council will KEY VOTE H.R. 2930 in its Ratings of the 112th Congress. We urge you to vote for H.R. 2930 when the bill comes before the full House for a vote.
For some time now, SBE Council and its members have been aggressively advocating for a new regulatory framework that would make crowd funding a reality. Bipartisan support that has developed is most welcome, with President Barack Obama supporting the effort, and U.S. Representative Patrick McHenry (R-N.C.) offering legislation in mid-September.
In a recent Washington Times op-ed, Sherwood Neiss, an entrepreneur, founder of Startup Exemption and a member of SBE Council, explained: "While not allowable under existing U.S. securities laws, crowd-fund investing can provide a way for micro-angel investors, both accredited and unaccredited, to pool their individual small investments to support entrepreneurs and enterprises that have merit. If changes are made in U.S. laws, the funding rounds can occur via SEC-regulated websites. These websites will provide transparency, open communication, accountability and reporting among the investors, entrepreneurs and the SEC. This is an expanded version of ‘friends and family' fundraising, which uses an individual's or business owner's social networks to create jobs and grow the economy."
Crowd fund investing will give small business owners and entrepreneurs access to sources of capital they currently cannot tap into without triggering complex SEC rules. With these reforms, more Americans will be able to invest in promising small businesses, which means more jobs and greater economic growth. Reformulating outdated rules while maintaining investor protections will help entrepreneurs identify and connect with qualified, potential investors.
This is an innovative way to help small business owners. Technology and the Internet, once again, are opening up new opportunities for entrepreneurs, including tapping into much-needed capital. In this case, Congress can play a critical role by passing the "Entrepreneurs Access to Capital Act."
Thank you, in advance, for your support of small business. Please vote for H.R. 2930.