H.R.3323 - Helping Startups Continue To Grow Act (119th Congress)
Summary
H.R.3323, the "Helping Startups Continue To Grow Act," proposes to update the definition of an emerging growth company (EGC) by increasing the revenue threshold from $1 billion to $3 billion. It also modifies the criteria for EGC status, extending the period under consideration from five to ten years and removing a specific disqualification clause. The bill aims to encourage continued growth and investment in startups.
Expected Effects
The primary effect of this bill would be to allow more companies to qualify as EGCs for a longer period. This could lead to increased access to capital and reduced regulatory burdens for these companies. Ultimately, this could foster innovation and economic growth.
Potential Benefits
- Increased access to capital for emerging growth companies.
- Reduced regulatory burdens, allowing companies to focus on growth.
- Potential for increased innovation and job creation.
- Attracts more investment into startups.
- Extends the runway for companies to mature.
Most Benefited Areas:
Potential Disadvantages
- Potential for reduced investor protection due to lighter regulatory oversight.
- May disproportionately benefit larger startups at the expense of smaller ones.
- Risk of companies exploiting the EGC status for longer than intended.
- Possible market distortions due to preferential treatment of EGCs.
- Increased complexity in financial regulations.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce. By modifying regulations affecting emerging growth companies, the bill aims to promote economic activity and investment, falling under the purview of Congress's authority to regulate commerce. There are no apparent infringements on individual rights or liberties as defined by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).