House Passes Emmer's Main Street Growth Act
WASHINGTON, DC - Today the U.S. House of Representatives passed Congressman Tom Emmer's (MN-06) Main Street Growth Act (H.R. 5877) which will create jobs, improve capital formation and encourage more early-stage Initial Public Offerings (IPOs) by facilitating the creation of venture exchanges. The bill passed 56-0 out of the Financial Services Committee last month.
“Today, the House took an important step to add to this economy’s growing momentum by passing the Main Street Growth Act,” said Congressman Emmer.
A 2012 study found that for nearly 2,800 companies that participated in an IPO between 1996-2010, total employment across these businesses increased by 2.2 million jobs, while total revenue increased by over $1 trillion. However, participation in the IPO process has slowed over the years. Today the U.S. has half of the number of publicly listed companies than it had two decades ago.
“It is critical that the current market structure meets the need for all types of companies to encourage more to go public which generates millions of jobs and trillions of dollars in revenue for the economy. This bill, which I was thrilled to see pass unanimously out of committee, will do just that by facilitating the creation of venture exchanges to embolden more early stage IPOs and improve capital formation for businesses in Minnesota and across the United States. As it heads to the Senate, I look forward to both sides of the aisle coming together to ensure that American entrepreneurs and workers can continue to succeed,” concluded Emmer.
Specifically, H.R. 5877 will allow the U.S. Securities and Exchange Commission to provide for the creation of venture exchanges. These specialized securities exchanges would help small and emerging growth companies gain access to the capital they need to grow and succeed. It would also establish an Office of Venture Exchanges under its Division of Trading and Markets to study and monitor the effectiveness of these new exchanges.
CLICK HERE to read H.R. 5877,
CLICK HERE to watch Emmer speak on the House floor on H.R. 5877.