Helping Job Creators Get the Capital They Need
by Karen Mills, SBA Administrator
- Created: December 8, 2011, 11:51 am
- Updated: December 8, 2011, 11:52 am
This article is co-authored by Gene Sperling, Director of the National Economic Council, and cross-posted on the White House blog.
- Crowdfunding: Nonprofits have already harnessed the power of online fundraising and social media to help meet their mission. In a similar way, we can create an appropriate regulatory framework for small businesses and startups to raise the capital they need from many small-dollar investors, while ensuring investor protections.
- Regulation A “Mini-Offerings”: For small businesses seeking to raise less than $5 million, there is an existing exemption from certain SEC requirements. But very few businesses are taking advantage of this “Regulation A” exemption today. The President has called for raising that limit to up to $50 million, making it easier for small companies to raise the capital they need to grow.
- Creating an On-Ramp for Emerging Growth Companies: For emerging growth companies, the vast majority of new jobs are typically created after they “go public.” Yet from 1995 to 2010, listings on U.S. exchanges shrank from 8,000 to 5,000 while listings on non-U.S. exchanges grew from 23,000 to 40,000. In March, after we held an Access to Capital conference, entrepreneurs and other private sector stakeholders formed an “IPO task force” and reported back to the Treasury Department with recommendations to help scale regulations for emerging growth companies while providing strong investor protections. Some of these ideas are being explored by Congress and the Administration right now.
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