CRAMER: House Passes Bill Incentivizing Growth of Small Businesses
WASHINGTON, D.C. – Congressman Kevin Cramer supported a bill passed by the U.S. House of Representatives today encouraging employers to attract and retain employees through employee ownership of companies.
H.R. 1343, the Encouraging Employee Ownership Act, directs the Securities and Exchange Commissions (SEC) to make it easier for employees to assume an ownership stake in the companies they work for.
Currently, SEC Rule 701 mandates private companies to comply with additional SEC regulatory compliance standards if the company has sold more than $5 million worth of securities to its employees over a 12-month period. This bill amends the SEC rule to raise this disclosure threshold from $5 million to $10 million and adjust the threshold for inflation every five years.
“With small businesses providing 60 percent of our nation’s job growth over the past two decades, we must reduce costly regulations in order to promote the growth of our start-ups,” said Cramer. “Offering employees an equity stake in a company brings pride and drive to see the enterprise succeed. When employees have a stake in the business they work for, it creates a sense of ownership that is good for the employer and adds value for the employee.”