Startup Exemption

Entries categorized as ‘Congressman Patrick McHenry’

4 Things You can do to Legalize Crowdfunding Today

March 11, 2012 · Leave a Comment

After returning from several days of lobbying for Crowdfund Investing in Washington, DC, we have this small window of opportunity to make Crowdfund Investing legal over the next several weeks.  Here’s what you need to know and what you need to do to help Legalize Crowdfunding today.

The House passed our Crowdfund Investing Bill (HR 2930) back in November.  The Senate has been sitting idly even though a few Senators have tried to push Crowdfunding forward.  However both Senate Majority Leader Reid (D-NV) and Banking Committee Chairman Johnson (D-SD) refused to act until now.

On March 8th, the House took 6 of the Capital Formation bills that passed with almost unanimous bipartisan support (including our Crowdfunding bill), packaged them together into one (called the JOBS Act) and passed it again with overwhelming bipartisan support.  The President came out and endorsed this Republican-led initiative and now they are calling the Senate’s bluff.  Either sit and do nothing and come election-time Americans will know that the Senate is the cause of the gridlock in DC or bring the bill (or their own version of the bill) to the floor to vote and act on our country’s behalf.

Here are 4 things you can do to help Legalize Crowdfunding today:

  1. Now more than ever we need people calling both Senate Majority leader Harry Reid (D-NV) at (202) 224-3542 and Senate Banking Committee Chairman Tim Johnson (D-SD) at (202) 224-5842 and let them know that America’s Entrepreneurs need Crowdfunding.
  2. Click the links, download, complete these form letters with your information and send them to both Reid and Johnson.
  3. Tweet, Facebook Status Update, Google+ & Linkedin Post about this page to your followers to spread the word.
  4. If you are an entrepreneur or if an Investor who would use or back some on a Crowdfund Investing website, then register on LegalizeCrowdfunding.org. (You can get there on your cell phone by texting “HR2930” TO 83432).
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Categories: Congressman Patrick McHenry · crowdfund investing · crowdfunding · Sherwood Neiss · Woodie Neiss
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Crowdfund Investing’s Window of Opportunity to Become Law

March 8, 2012 · Leave a Comment

This was a busy week for Crowdfunding in Washington, DC.  Sherwood Neiss, Chief Advocate for the Startup Exemption spent the last weekend working with and prepping Tim Rowe Founder and CEO of the Cambridge Innovation Center for Tuesday’s Senate Banking Committee Hearing on Capital Formation.  Mr. Rowe was the expert panelist speaking about the benefits of Crowdfund Investing (CFI) not only for the 450 startups in his innovation center (including Crowdfund Investing platform Wefunder) but for the thousands of entrepreneurs that don’t have access to Cambridge, Silicon Valley, or Wall St.

Unlike prior hearings that were hostile towards Crowdfund Investing, this hearing had a growing list of bipartisan supporters including once vocal opponent, Senator Charles Schumer.  In his remarks he stated, “Given the level of bi-partisan support… passage in the Senate appears not to be a matter of if, but of when. I expect a comprehensive Senate proposal to be announced in the coming days.”  With two Senate Bills on Crowdfunding, a compromise solution advanced, and Republicans and Democrats lining up, perhaps the guys at LegalizeCrowdfunding.org will see the light of day soon.

The Senate is under pressure to act or be portrayed as out of touch with Americans who want action in Washington.  The House crafted, marked up and voted on six capital formation bills all meant to spur innovation, entrepreneurship and employment.  All received overwhelming bi-partisan support, including the Crowdfunding bill H.R. 2930 (the basis of which comes from the Startup Exemption framework) that was approved 407-17.   All have been sent over to the Senate where Senator Reid who controls the calendar has refused to act until now.

In a direct affront to the gridlock that exists in Washington, DC, the House decided to show America where in fact the bottleneck in Washington resides – with the Senate.  Today the JOBS Act, a compilation of all the already passed, aforementioned Capital formation bills (including Crowdfund Investing) were grouped together in one bill and passed again by the House.  This tremendously bi-partisan bill addresses the challenges that are preventing our nation’s job creators from getting capital that they need to innovate and hire Americans.  By grouping them together, one bill will be sent to the Senate to take up rather than several.  It either keeps the Senate from debating and stalemating on each one or forces them to come up with their own JOBS Act (which is hard since they haven’t taken up and passed any of the bills from the House to date). To further point the finger, the President came out and publicly endorsed the Republican championed legislation.

Backed up against the wall, Senator Reid announced that the Senate will move forward on these capital formation bills.  How he will do it is up in the air.  The choices are in Committee or on the floor of the Senate.  If it is done in Committee then both sides can work out their issues and come to a compromise.  If Reid decides to take it directly to the floor then he opens it up to Amendments that historically prove to derail the process and reinforce the gridlock.

Now is the time for entrepreneurs who need access to capital to call both Senate Majority leader Harry Reid (D-NV) at (202) 224-3542 and Senate Banking Committee Chairman Tim Johnson (D-SD) at (202) 224-5842 and let them know that America’s Entrepreneurs need Crowdfunding.

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Categories: Congressman Patrick McHenry · crowdfund investing · crowdfunding · LegalizeCrowdfunding.org · Sherwood Neiss
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Press Release: Small Business Groups Urge U.S. Senate for Crowdfunding

March 1, 2012 · Leave a Comment

News from the Small Business & Entrepreneurship Council

FOR IMMEDIATE RELEASE        CONTACT:  Karen Kerrigan

February 29, 2011                              (703)-242-5840, kkerrigan@sbecouncil.org

Small Business Groups Urge U.S. Senate Leaders to Quickly Move Forward on Crowdfunding Legislation

Washington, D.C. —  Today, a coalition of the nation’s most influential organizations representing small business owners and entrepreneurs is urging U.S. Senate leaders to work together to bring crowdfund investing legislation to the Senate floor for a vote. In a letter addressed to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), the groups note that crowdfund investing legislation passed the U.S. House 407-17, and President Barack Obama has expressed his support for the legislation through a Statement of Administration Policy as well as in his Startup Legislative agenda recently delivered to Capitol Hill.

Crowdfund investing platforms will allow entrepreneurs who lack access to funding networks the opportunity to bring their business ideas directly to investors through regulated, online platforms.  As the groups note in the letter, “Americans will have the opportunity to invest in small businesses in their local communities, or support entrepreneurs in rural areas where business formation is critical to sustaining those communities.”  The letter points out that capital access remains a serious challenge for startups and growth-oriented businesses, and without “adequate sources of capital, the economy will continue to underperform, and the recovery will remain less than robust.”  Funding streams “remain cautious, locked or tentative,” write the groups.

Two crowdfund investing bills have been introduced in the U.S. Senate.  Majority Leader Reid announced yesterday that the U.S. Senate will address the package of capital formation bills that overwhelmingly passed the U.S. House.  With respect to crowdfund investing legislation, state regulators have engaged in a campaign of “fear and fraud,” which has deprived Senators from learning the facts about how crowdfunding currently works through gift-based platforms, and how technology  — and a new regulatory framework – will play a central role in rooting out potentially bad actors on crowdfund investing platforms.

As the groups note in their letter:

“On these platforms, investors will dynamically engage with other investors to vet business ideas and fund those businesses that have significant promise.  Crowdfund investing platforms will be open and transparent, and operate under a new regulatory framework. The platforms will protect investors by utilizing proven technologies and tap into ‘the sunshine’ of social media.  This is what has made gift-based crowdfunding so successful, and why crowdfund investing has been a major success in other parts of the world.  Entrepreneurs looking to raise capital will be required to provide significant financial information to potential investors, as well as withstand the scrutiny of the crowd in regards to the feasibility of their business plans and models.

The small business groups are optimistic about the legislation’s fate. In the letter, they communicate a belief that “a consensus is achievable for advancing legislation that enables effective crowdfund investing platforms for small businesses while protecting investors.”  Majority Leader Reid said the Senate Banking Committee will hold an additional hearing on the package of capital access bills next week, which the groups hope will include expert witnesses on crowdfunding so that Senators can be properly informed about existing platforms, and how the new space will protect investors.

The groups underscore the importance of the need to work together to enact solutions that will help small business owners invest, grow and create jobs  “Capital is the lifeblood of our economy, and without it small business owners and entrepreneurs simply cannot generate the new jobs, breakthrough innovations and economic impact that are necessary for bringing our nation back to sustained growth,” the groups conclude in the letter.

The letter was signed by Harry Alford, President & CEO, National Black Chamber of Commerce; Kristie Arslan, President & CEO, National Association for the Self-Employed; Roger Campos, President & CEO, Minority Business Roundtable; Allen Gutierrez, National Executive Director, The Latino Coalition; Barbara Kasoff, President & CEO, Women Impacting Public Policy (WIPP); Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council; and Todd McCracken, President, National Small Business Association.

A copy of the letter can be accessed here.  For additional information, please contact or visit the Small Business & Entrepreneurship Council (SBE Council) at 703-242-5840, or www.sbecouncil.org.

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Categories: Congressman Patrick McHenry · crowdfund investing · crowdfunding
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VIDEO – What Does Crowdfunding Mean?

November 21, 2011 · Leave a Comment

Thanks to Congressman McHenry’s staff for putting together this amazing video on the Rally 4 Crowdfunding

McHenry Addresses Crowdfunding Rally

 

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Categories: Congressman Patrick McHenry · Crowd Fund Investing · Jason Best · Sherwood Neiss
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