Bills easing SEC rules advance in House

The House on Thursday approved a rule for two bills that would ease Securities and Exchange Commission (SEC) rules related to capital formation.

Soon after the vote, done by unanimous consent, members were expected to debate one of the bills: H.R. 2940, which would allow small startup companies to solicit investors for startup capital.

The Rules Committee made in order just one amendment to this bill, which would require advertising materials to disclose information on bonus compensation structures for companies seeking capital.

The rule also covers debate for H.R. 2930, which would allow companies to obtain capital in amounts less than $1 million through small investors — known as "crowdfunding" — without registering with the SEC. Debate and consideration of amendments could take place late Thursday or Friday.

House Small Business Committee Chairman Sam Graves (R-Mo.) said passing both bills would help small businesses, in particular given their ongoing problems accessing credit.

"In order to help get business owners the capital they need, it is imperative that Washington adopts policies that support functional capital markets, while lessening restrictions and barriers to finding investment," Graves said. "The Entrepreneur Access to Capital Act [H.R. 2930] and the Access to Capital for Job Creators Act [H.R. 2940] do just that, by promoting an innovative method of capital formation, in crowdfunding, and opening the pool of investors from which small companies can raise equity capital."