Hill’s pro-small business bill passes House as part of larger capital markets measure

The U.S. House of Representatives on March 8 approved legislation sponsored by U.S. Rep. French Hill (R-AR) that would expand credit access for small businesses and make it easier for them to comply with regulatory standards.

Rep. Hill’s bill, the Remove Aberrations in the Market Cap Test for Target Company Financial Statements Act, H.R. 2497, which he introduced in April 2023, passed the House as part of the larger Expanding Access to Credit Act of 2023, H.R. 2799.

“As a former entrepreneur and community banker, I understand firsthand the importance of small businesses having fair access to capital to grow,” Rep. Hill said. “Small businesses are the backbone of our economy and deserve to be helped — not hurt — by their own government.”

Specifically, Rep. Hill’s H.R. 2497 would clarify that all classes of acquirer’s equity could count toward the market cap test to determine which acquisitions (20 percent) are “significant” to require target company financial disclosures, according to a bill summary provided by his staff. 

The larger bill, H.R. 2799, also introduced in April 2023 by U.S. Rep. Patrick McHenry (R-NC), would make reforms to the capital markets of the United States. The House advanced the bill on a 212-205 vote and it now heads to the U.S. Senate for action.

U.S. House Financial Services Committee “Chairman Patrick McHenry and I have made expanding access to capital a top priority in our committee to ensure entrepreneurs can start and grow their successful business,” said Rep. Hill, who serves as vice-chairman of the committee.