Press Releases
House Passes Womack’s Bipartisan Bill to Reduce Small Business Credit CrunchLegislation improves access to capital for community banks
Washington,
November 2, 2011
The U.S. House of Representatives today passed a bipartisan bill authored by Congressmen Steve Womack (R-AR) and Jim Himes (D-CT). H.R. 1965 increases from...
The U.S. House of Representatives today passed a bipartisan bill authored by Congressmen Steve Womack (R-AR) and Jim Himes (D-CT). H.R. 1965 increases from 500 to 2,000 the number of shareholders permitted to invest in a community bank before it must register with the SEC. In addition, this bill brings the law into agreement with existing SEC rules by increasing the limit, from $1 million to $10 million, on the value of a company’s assets which triggers SEC registration. “With today’s passage of H.R. 1965, we have given community banks the flexibility they need to raise capital without having to comply with the onerous SEC regulations intended for larger banks,” Womack said. “By raising the shareholder threshold from 500 to 2,000, banks will now be better positioned to increase small business lending which, in turn, will promote economic growth in communities across the country. I would like to thank Congressman Himes for his leadership in crafting this bipartisan measure.”
“This bill helps banks help growing businesses access the capital they need to expand and create jobs while maintaining important protections for investors,” Himes said. “As we seek creative solutions to our nation’s dangerous jobs crisis, we should look to changes like these that improve the business climate without harming our environment, eliminating health protections, or reducing our ability to invest in the education and infrastructure we know are critical to long-term prosperity.” ###
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