Thune sponsors bill to benefit ‘job creators’ and cut red tape

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Sen. John Thune introduced a bill Wednesday that he said would make it easier for businesses to raise capital.

Thune, R-S.D., has sponsored the Access to Capital for Job Creators Act (S. 1831), which he said in a press release would reduce regulatory burdens facing small businesses by updating Securities and Exchange Commission (SEC) regulations. The House of Representatives passed the legislation 413-11 on Nov. 3.

“Small businesses are the engines of our economy, but government red tape is currently preventing these businesses from creating even more jobs,” said Thune.

Thune’s legislation would remove the SEC provision that currently prevents small businesses from attracting capital from accredited investors nationwide.

At present, any business looking to sell securities must either register with the SEC or meet certain qualifications under Regulation D of the Securities Act of 1933 in order to be exempt from SEC registration.

Becoming registered is often a burdensome process for small businesses due to the significant amount of paperwork and audits required, Thune said in a news release.

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