Specifically, it would allow new business entities to use crowdfunding to accept and pool donations of up to $1 million without having to register with the SEC.
"Outdated regulations are getting in the way of innovative ideas making it from the dinner table to the production line," bill sponsor Rep. Patrick McHenry (R-N.C.) said. "This legislation will give small businesses and entrepreneurs access to the capital they need to expand, compete and — most importantly — hire."
The second bill is H.R. 2940, the Access to Capital for Job Creators Act, which would remove the SEC ban that now prevents small companies from advertising to solicit investors. House Majority Whip Kevin McCarthy (R-Calif.), who sponsored the bill, says the current ban is "actively preventing job creation."
"My bill … will help entrepreneurs and small-business owners access the capital they need to be innovative, dynamic and, ultimately, become the thing our economy needs most right now: job creators," he said.
The House Financial Services Committee approved both bills by voice vote on Wednesday, which indicates both will easily pass with some level of bipartisanship next week.