WASHINGTON (MarketWatch) — A new package of legislation that aims to provide innovative financing to small publicly traded companies at the same time as it seeks to help private companies go public may soon be under consideration on Capitol Hill.
At least that’s according to Rep. David Schweikert, the chairman of the House Small Business Subcommittee on Investigations, Oversight and Regulations.
Schweikert, an Arizona Republican who represents a suburban Phoenix district, sat down with MarketWatch to explain why he believes a group of small-business funding measures may be included in a collection of bills dubbed JOBS Act 2.0, which follows bipartisan legislation approved a year ago that sought to help small companies accumulate capital. (That bill, known as the Jumpstart Our Business Startups Act, is being transformed into regulation by the Securities and Exchange Commission).
In a wide-ranging conversation, Schweikert talked about his enthusiasm for a measure under consideration by the SEC known as “crowdfunding,” which seeks to ease restrictions on entrepreneurs so they can raise capital cheaply from retail investors employing new online funding portals.
Think these portals will result in an uptick in fraud? That kind of talk “outrages” Schweikert, who says the new endeavor will allow the “little guy” to invest in businesses that appeal to them. He also has ideas for how it can be improved.
And expect legislation to be approved: Democrats and Republicans may live in ideologically different worlds but they have “found a way to communicate” on these kinds of things, he says.
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