A group of Republican Senators reportedly unveiled a plan to allow greater access to retail investors for small to mid-sized businesses.
The discussion draft, called The JOBS Act 4.0, was released by Republican Sen. Pat Toomey of Pennsylvania. The draft includes almost 30 bills sponsored by both Republicans and Democrats, CNBC reported Monday. (RELATED: Are Bond Yields Signaling That A Recession Is On The Horizon?)
Among the dozens of bills, an overall strategy emerges to allow both public and private businesses to access capital from investors more freely. Some of the bills already have bipartisan support, including one bill to require the Securities and Exchange Commission (SEC) to study businesses in rural America and their ability to access private investments, according to CNBC. The bill is sponsored by Democratic Sen. Tina Smith of Minnesota and Republican Sen. John Kennedy of Louisiana.
Another bill would modify the SEC definition of “accredited investor,” which is currently limited to individuals who make at least $200,000 a year in income or have a net worth of at least $1 million, CNBC reported. Many private and emerging businesses rely on investments from retail investors to help their businesses grow.
Some aspects of the plan may prove more difficult to pass in the Democrat-controlled Congress. A proposal to allow publicly traded companies to submit financial reports semi-annually, as opposed to the current regulation which requires quarterly reports, is unlikely to garner much support from Democrats, according to CNBC.
Former President Donald Trump supported such a move in 2018 as a way to help businesses think more long term.
The discussion draft is meant to garner opinions from lawmakers before presenting the bills to Congress, CNBC reported.