U.S. Rep. French Hill (R-AR) recently offered legislation that would reduce the current financial restrictions on investors, which are based on an individual’s income and wealth and exclude too many Americans from access to capital.
“An arbitrary wealth test should not be the metric by which the federal government determines who can and who can’t invest in private offerings,” Rep. Hill said.
The congressman on May 19 sponsored the Fair Investment Opportunities for Professional Experts Act, H.R. 3328, with original cosponsor U.S. Rep. David Schweikert (R-AZ), which would expand the definition of an accredited investor, allowing Americans who have relevant education, professional experience, or other similar credentials to invest in private offerings, according to a bill summary provided by Rep. Hill’s office.
For example, the Securities and Exchange Commission might determine, as directed by the legislation, that a practicing doctor should be able to invest in a telehealth business or a farmer should be able to invest in a tractor company as long as the investor can demonstrate knowledge and experience in the field, the summary says.
“Small businesses and startups in Arkansas and across the country are integral to our nation’s economic growth, innovation and job creation,” said Rep. Hill. “This legislation would simply provide individuals who demonstrate a strong understanding of an offering the opportunity to invest in private offerings – providing greater investment opportunities for Arkansans and enabling entrepreneurs to create more jobs.”
Reps. Hill and Schweikert have previously introduced the bill several times, most recently in October 2019 during the 116th Congress when H.R. 4762 died in the U.S. House Financial Services Committee. The newly reintroduced H.R. 3328 also has been referred for review to the same committee.