U.S. Rep. Tom Emmer (R-MN) sponsored a bill this week to allow the U.S. Securities and Exchange Commission to register venture exchanges that will help small companies gain access to the capital they need to grow.
“It is critical that our capital market structure meets the needs of American companies, regardless of size or type,” the congressman said.
Rep. Emmer introduced the bipartisan Main Street Growth Act, H.R. 5795, with original cosponsor U.S. Rep. Jimmy Panetta (D-CA), legislation designed to improve access to capital for emerging growth companies, create jobs, and encourage more early-stage Initial Public Offerings (IPOs).
According to information from Rep. Emmer’s staff, the number of IPOs declined more than 63 percent from the 1990s to the 2000s and has stayed relatively unchanged through the 2010s. In addition, the number of IPOs totaling under $100 million has sharply dropped.
“This legislation will make it easier for thousands of small and emerging growth companies – including over 100 in Minnesota – to go public, generating millions of jobs and trillions of dollars in revenue for the economy,” the congressman said.
Rep. Emmer had originally introduced the Main Street Growth Act during the 115th Congress, where it was approved by the U.S. House. H.R. 5795 will now be considered by the U.S. House Financial Services Committee.
“I look forward to both sides of the aisle coming together to ensure that American entrepreneurs and workers can continue to succeed,” added Rep. Emmer.