Bipartisan legislation introduced by U.S. Rep. Bryan Steil (R-WI) would streamline reporting requirements for new companies to help encourage entrepreneurial growth and success.
“My bill allows startups to focus on supporting workers, expanding their company, and developing the best products in the world, rather than dealing with regulations and compliance costs,” said Rep. Steil, who serves on the U.S. House Financial Services Committee.
If enacted, the Helping Startups Continue to Grow Act, H.R. 3448, which Rep. Steil sponsored alongside Republican colleagues U.S. Reps. French Hill (R-AR) and Trey Hollingsworth (R-IN), would provide a five-year extension of certain exemptions and reduced disclosure requirements for Emerging Growth Companies (EGCs), which are young, public companies that are continuing to invest in innovation.
Currently, EGCs may maintain their status for up to five years after they become a public company. However, many are not generating enough revenue five years after becoming public to support the compliance costs related to a loss of EGC status, according to information provided by Rep. Steil’s office.
The five-year extension under H.R. 3448 means startup companies would have fewer bureaucratic regulations and compliance procedures to meet, thereby allowing them to continue focusing on investing in communities, creating good paying jobs, and developing products, the information says.
The bill aims to help all startups, but especially those companies developing lifesaving drugs, medical devices and other products, according to Rep. Steil’s office.
“We must give entrepreneurs the tools to recover and succeed following the pandemic,” Rep. Steil said. “Reducing regulatory burdens is one step to help new companies create jobs and grow wages.”
Rep. Hill noted that American entrepreneurs and small business owners are the nation’s economic lifeblood. “Rep. Steil’s legislation allows these businesses to focus on growth and expansion in their early stages which allows for more investment in our communities and our economy overall,” he said. “I am proud to work with my colleague on this bill.”
“The Helping Startups Continue to Grow Act reduces burdensome regulations, helping small companies expand and raise capital at a critical time for new business development,” added Rep. Hollingsworth.