H.R. 4855: Fix Crowdfunding Act of 2016

By SBE Council at 12 April, 2016, 8:51 pm

UPDATE: On July 5, 2016 the U.S. House passed H.R. 4855, as amended, by a vote of 394 – 4.

The Honorable Patrick McHenry

U.S. House of Representatives

Washington, DC 20515

Dear Representative McHenry:

On behalf of the 100,000 members of the Small Business & Entrepreneurship Council (SBE Council), I am pleased to announce our support for H.R. 4855, the Fix Crowdfunding Act of 2016. America’s entrepreneurs are beginning to benefit from JOBS Act crowdfunding, but reforms are needed to ensure this efficient approach for accessing capital is fully leveraged, especially when Title III crowdfunding takes effect on May 16, 2016.

The fixes made by H.R. 4855 are reasonable. They will lower the cost of raising capital, allow entrepreneurs to raise the funds that are needed in today’s economy to scale their firms for growth, and facilitate the development of a dynamic and diverse funding portal marketplace. H.R. 4855 would, among other things, increase the maximum crowdfunding offering threshold to $5 million, clarify the investment caps, and allow single-purpose funds to comply with these guidelines. In addition, clarifying existing law as it relates to the liability risks attributable to funding portals will lift the uncertainty that undermines what was supposed to be a key feature of the JOBS Act. This critical provision will reduce uncertainty and costs, expand opportunities for both entrepreneurs and investors, and drive innovation and choice in the marketplace.

Thank you for your leadership and ongoing work to ensure the JOBS Act is successful and effective for America’s entrepreneurs and small business owners. SBE Council looks forward to working with you to advance H.R. 4855 into law.
Sincerely,

Karen Kerrigan, President & CEO