Haridopolos Introduces First Bill to Cut Red Tape for Small Businesses Seeking to Grow
WASHINGTON, D.C. – Today, Congressman Mike Haridopolos (FL-08) introduced his first piece of legislation, H.R. 3343, The Greenlighting Growth Act. This bill will help small public companies by clarifying financial reporting requirements and removing outdated regulatory roadblocks to growth. The bill amends federal securities law to ensure that Emerging Growth Companies (EGCs) can continue to benefit from streamlined disclosure rules created under the bipartisan Jumpstart Our Business Startups (JOBS) Act of 2012.
“Emerging Growth Companies are an engine of innovation and job creation across this country,” said Congressman Haridopolos. “This targeted legislation removes a needless roadblock and sends a clear message that we’re committed to smart reforms that reward innovation, fuel growth, and keep America the best place in the world to start and scale a business.”
The Greenlighting Growth Act ensures that EGCs, and companies that went public under EGC status, are not required to submit more than two years of audited financial statements, even when acquiring another company. The bill reinforces the intent of the JOBS Act and supports continued capital formation for smaller, high-growth firms.
“America’s small and mid-sized innovators shouldn’t be penalized for seeking to grow through acquisitions,” added Congressman Haridopolos. “This bill keeps the rules clear and consistent so that these firms can raise capital and expand without being held back by red tape that the JOBS Act was never meant to impose.”
Background:
The JOBS Act of 2012 created the “Emerging Growth Company” designation to help smaller companies access public markets with fewer barriers. Under current law, EGCs, defined as companies with less than $1.235 billion in annual revenue, can go public using simplified SEC filing requirements, including a reduced two-year window for audited financial statements.
However, that flexibility becomes unclear when those same companies try to expand through acquisitions. The SEC can require additional years of financial data, creating uncertainty and undermining the intended purpose of EGC status. The Greenlighting Growth Act preserves those benefits in acquisition scenarios, providing clarity for businesses, reducing compliance costs, and allowing American companies to more easily grow.
The full text of H.R. 3343 can be found here.