Manchin Introduces Bill to Boost Small Business Growth
Washington, D.C. – U.S. Senator Joe Manchin (D-W.Va.) today introduced the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2013 to exempt brokers involved in mergers and acquisitions of privately-owned small businesses from expensive registration requirements before the Securities and Exchange Commission (SEC). Costs for these brokers can be very expensive, as a percentage of the transaction, and those costs are often passed down to the small business owners who use these services. Throughout the coming years, an estimated $10 trillion of privately-owned businesses will be sold or closed as baby boomers retire. Thus, this bill will pay big dividends in the future to create and preserve jobs as the new owners acquire and grow existing businesses. The legislation also preserves other investor protections under both state and federal law.
“Small businesses are truly the engine of our economy, providing the goods and services we depend on every day,” Senator Manchin said. “As a small businessman myself, I understand the challenges small businesses face and all they contribute to making this country great. This bill would not only help create and maintain jobs and allow small businesses to grow and expand, but it would boost economic prosperity across our great nation.”
Under this legislation, small businesses that make less than $25 million in annual earnings or less than $250 million in annual gross revenue are exempt from the SEC’s expensive registration requirements.
The Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2013 has a wide range of support, from the U.S. Chamber of Commerce to the National American Securities Administrators Association. Similar legislation in the House of Representatives also passed unanimously by a vote of 422-0.
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