Haridopolos Bill to Cut Red Tape for Small Businesses Clears Committee
WASHINGTON, D.C. – Today, the House Committee on Financial Services favorably reported H.R. 3343, the Greenlighting Growth Act, introduced by Congressman Mike Haridopolos (FL-08). This marks a major step forward in efforts to support small public companies and reduce regulatory burdens that hinder growth.
The bill clarifies financial reporting rules for Emerging Growth Companies (EGCs)—a category of high-growth firms created under the bipartisan Jumpstart Our Business Startups (JOBS) Act of 2012—and ensures they can continue benefiting from the streamlined disclosure rules Congress originally intended.
“I want to thank Chairman Hill and my colleagues on the Financial Services Committee for advancing this legislation,” said Congressman Haridopolos. “The Greenlighting Growth Act is a targeted, commonsense fix that ensures small businesses aren’t punished for growinggreat success stories of the JOBS Act, helping startups raise capital and create jobs. But the law needs to keep pace with how these companies grow in the real world. This bill does that by reinforcing the original intent of the JOBS Act and removing costly uncertainty around acquisitions. I look forward to seeing this bill move swiftly to the House Floor for final passage.”
“Let me congratulate my friend from Florida, a new member of this Committee and the Majority Whip for the Financial Services Committee, for introducing one of his first legislative efforts in the Committee. I’m proud to support H.R. 3343, the Greenlighting Growth Act,” said House Committee on Financial Services Chairman French Hill (AR-02).
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 the EGC status. The Greenlighting Growth Act preserves those benefits in acquisition scenarios, providing clarity for businesses, reducing compliance costs, and allowing American companies to grow more easily.
The full text of H.R. 3343 can be found here.