Huizenga’s bipartisan bill supports small business entrepreneurship

Mergers and acquisition brokers who help transfer the ownership of small, privately held companies would be exempt from securities registration under a bipartisan bill sponsored on Feb. 8 by U.S. Rep. Bill Huizenga (R-MI).

“The pandemic has ravaged small businesses forcing a significant number of these sources of economic activity to close their doors for good,” Rep. Huizenga said. “Now more than ever, the federal government must embrace a proactive approach to support small business entrepreneurship.” 

The congressman said he introduced the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2021, H.R. 935, with bill cosponsor U.S. Rep. Brian Higgins (D-NY), to help save small business jobs, encourage new small business ownership, and decrease regulatory costs for small businesses.

“Today’s one-size-fits-all regulatory structure treats the sale of a privately owned family business the same as if an investment bank were buying a publicly traded company,” explained Rep. Huizenga. “Currently, compliance costs can exceed $150,000 in the first year while adding an additional $75,000 per year after that at the federal level. 

“These massive regulatory costs pose a serious threat to the future of family-owned businesses and the jobs they have created,” he added, noting that “as baby boomers continue to retire, it is estimated that $10 trillion in privately held small businesses will either be sold to the next generation of entrepreneurs or close.” 

H.R. 935 has been referred for consideration to the U.S. House Financial Services Committee.