H.R. 4139: The Fostering Innovation Act

By SBE Council at 23 May, 2016, 8:00 am

UPDATE: On May 23, the U.S. House passed H.R. 4139 by unanimous consent.

Dear Member of the U.S. House of Representatives:

Today, the U.S. House votes on an important bipartisan measure that will drive investment and innovation by providing America’s most promising and cutting-edge startups with red-tape relief. The Small Business & Entrepreneurship Council (SBE Council) strongly supports The Fostering Innovation Act, H.R. 4139, which sensibly extends an exemption allowed for in the JOBS Act to growing companies whose business models require more regulatory flexibility, and thus will enable greater success.

H.R. 4139, co-sponsored by Reps. Kyrsten Sinema (D-AZ) and Mike Fitzpatrick (R-PA), would extend the JOBS Act’s SOX 404(b) exemption for an additional five years for former emerging growth companies (EGCs) that maintain a public float below $700 million and average annual revenues below $50 million.  The five-year extension would allow growing companies to direct their precious capital toward R&D, productivity, and market success rather than the one-size-fits-all regulatory burdens associated with costly 404(b) compliance.

This sensible bill builds on the success of the JOBS Act and recognizes that critical sectors of our economy, like biotech, remain pre-revenue even after the five-year EGC period. H.R. 4139 is another important legislative step that would add to the House’s bipartisan success in advancing a host of bills that support small business capital formation.

SBE Council urges a yes vote on The Fostering Innovation Act. Thank you, in advance, for your support of America’s entrepreneurs and small businesses.

Sincerely,

Karen Kerrigan, President & CEO