April 04, 2022

Banking Republicans Roll Out Capital Formation Legislation to Mark 10th Anniversary of JOBS Act

The JOBS Act 4.0 Will Accelerate Economic Growth and Spur New Business Creation

Washington, D.C. – Ahead of the 10th anniversary of enactment of the bipartisan Jumpstart Our Business Startups (JOBS) Act, U.S. Senate Banking Committee Republicans today unveiled a discussion draft of a new plan to help accelerate economic growth and spur new business formation. The draft’s working title is the JOBS Act 4.0.

“The JOBS Act helped to revitalize interest in the public markets and spur economic growth, but it is clear significant work remains to be done to give retail investors access to higher returns and ensure American markets remain the deepest and most liquid in the world,” said Ranking Member Toomey. “The discussion draft we’re releasing today incorporates ideas from entrepreneurs, retail investors, and others, and includes numerous provisions with strong bipartisan support. I look forward to continue working with both Republican and Democrat colleagues on a final product that accelerates economic growth and spurs new job creation across the U.S.”

“As more companies are created, grow, and go public, every facet of the American economy benefits,” said Senator Tim Scott. “Entrepreneurs are responsible for creating countless jobs as they expand and scale their operations, conduct research and development to produce innovative technology and medical breakthroughs, and invest in communities all across the country. I’m proud to be a part of this group that is building on the JOBS Act to ensure America’s startups can focus their resources into creating high-paying jobs and inventing next generation technology and lifesaving drugs.”

“Under Ranking Member Toomey’s leadership, Senate Banking Republicans have worked hard to engage the public on ideas to improve the process for companies to grow and become publicly traded for all Americans to invest in,” said Senator Tillis. “I am proud to partner with my colleagues to introduce these bills to create more jobs, level the playing field for retail investors, and open up new funding opportunities for businesses.”

“The American economy is the greatest in all of human history because of free markets, and the JOBS Act 4.0 will make it even stronger by promoting a healthy market for investors and companies alike,” said Senator Kennedy. “This package will help companies to trade more easily, improve their access to private capital and make meaningful reforms to the SEC.”

“As Tennessee’s former Commissioner of Economic Development and now as U.S. Senator, I know that a good-paying job can solve a lot of ills for Americans, which is why I’m pleased to work with Ranking Member Toomey and my Banking Committee colleagues on an economic growth package that will help create jobs and return us to a Blue Collar boom,” said Senator Hagerty. “One of my top priorities is to ensure the United States remains the preeminent place to invest capital, which means growing the private sector, not government. This legislation advances important initiatives and policies to improve our markets, enhance investment opportunities, and reduce unnecessary overregulation.”

“Our work today seeks to accelerate economic growth and spur new business creation. These bills create more access to capital for businesses on Main Street and in rural communities while repealing burdensome requirements inhibiting growth and innovation. At a time with record inflation and Biden’s supply chain crisis, it’s more important than ever to work towards a regulatory environment where entrepreneurs, small businesses, and investors can thrive,” said Senator Cramer.

"We should be doing all we can to reduce unnecessary, burdensome regulations for Montana businesses and help spur economic growth and job creation,” Senator Daines said.

On February 2, 2021, Ranking Member Toomey announced requests for legislative proposals to increase economic growth and job creation by facilitating capital formation. In response, Committee Republicans received 35 submissions with more than 150 legislative proposals from a wide variety of bipartisan organizations and stakeholders.

The discussion draft of the JOBS Act 4.0 takes into account stakeholder feedback and represents the collective efforts of Senate Republicans to draft nearly 30 pieces of legislation, 24 of which have been introduced as a stand-alone measure, including some with bipartisan support.

The JOBS Act 4.0 will:

·        Encourage companies to be publicly-traded — includes eight initiatives to encourage companies to become publicly-traded, particularly during earlier growth stages, when investors have the chance to earn the highest returns.

·        Improve the market for private capital — includes six initiatives to reduce costs associated with seeking capital by appropriately tailoring regulations for small businesses.

·        Enhance retail investor access to investment opportunities — includes eight initiatives to prevent retail investors from being excluded from certain investment opportunities.

·        Improve regulatory oversight — includes seven initiatives to enhance investor protection and privacy and to update outdated statutory and regulatory provisions.

Committee Republicans will collect feedback on the discussion draft through June 3, 2022. To submit feedback, please email submissions@banking.senate.gov.

here to read the discussion draft.

here for a one page fact sheet on the JOBS Act 4.0.

here for a section-by-section.