Jacob Ogles
U.S. Rep. Mike Haridopolos wants to remove financial reporting roadblocks for growing businesses.
The Indian Harbour Beach Republican filed his first individual bill on Friday. The Greenlighting Growth Act (HR 3343) would change federal securities law by putting streamlined disclosure rules for Emerging Growth Companies into federal statute.
“Emerging Growth Companies are an engine of innovation and job creation across this country,” Haridopolos said.
“This targeted legislation removes a needless roadblock and sends a clear message that we’re committed to smart reforms that reward innovation, fuel growth, and keep America the best place in the world to start and scale a business.”
The legislation could expand on rules created administratively after the Jumpstart Our Business Startups (JOBS) Act became law in 2012. This would allow smaller startups to access public markets more quickly.
Current federal law defines Emerging Growth Companies as those with less than $1.235 billion in annual revenue. The rule allows such companies to go public under a simplified process, including a reduced two-year window for audited financial statements.
But companies run into issues if owners expand through acquisition, which can trigger requirements by the Securities and Exchange Commission and require additional years of financial data.
Haridopolos’ bill would preserve the process for companies in acquisition scenarios. This should reduce compliance costs and allow U.S. businesses to grow more easily in various ways.
“America’s small and mid-sized innovators shouldn’t be penalized for seeking to grow through acquisitions,” Haridopolos said. “This bill keeps the rules clear and consistent so that these firms can raise capital and expand without being held back by red tape that the JOBS Act was never meant to impose.”
Haridopolos won election to Congress in November, succeeding former U.S. Rep. Bill Posey. He previously ran a political consulting firm and campaigned on a pro-business, fiscally conservative platform.
