House Passes Haridopolos Bill to Cut Red Tape for Small Businesses
WASHINGTON, D.C. – Tonight, the House of Representatives passed H.R. 3343, the Greenlighting Growth Act, sponsored by Congressman Mike Haridopolos (FL-08). The bill marks a major step toward removing regulatory barriers that prevent small, high-growth companies from expanding and creating jobs. This is the first bill introduced by Congressman Haridopolos since taking office in January.
“The Greenlighting Growth Act is about making it easier for small businesses to grow,” said Congressman Haridopolos. “It ensures that companies using the simplified reporting rules under the JOBS Act don’t get hit with new paperwork burdens just because they’re trying to expand. We’re cutting red tape, keeping the rules clear and consistent, and making sure that America remains the best place in the world to start and scale a business.”
The Greenlighting Growth Act ensures that Emerging Growth Companies (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.
“Emerging Growth Companies have been one of the great success stories of the JOBS Act,” Haridopolos added. “They help drive innovation, create jobs, and fuel our economy. Tonight’s vote sends a strong message that Congress supports smart regulatory reform that encourages growth and investment. I’m proud to see my first bill pass the House tonight, and I want to thank Chairman Hill and my colleagues for their support.”
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.