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Senate Republicans unveil bill to help small businesses

Written on Apr 6, 2022

A group of Senate Republicans have introduced a proposal to spur new business formations by encouraging companies to become publicly traded, tailoring regulations for small businesses and enhancing protection for retail investors. 

The bill, known as the JOBS Act 4.0, represents the collective efforts of Senate Republicans to introduce 24 standalone bills that, among other things, could make it easier for small businesses to access capital and roll back certain regulations put into place in the wake of the 2008 financial crisis.  

It is intended to build on the bipartisan JOBS Act of 2012, which was signed into law by President Barack Obama 10 years ago this week. 

The new plan includes eight initiatives that are designed to encourage young firms to trade on public markets, where investors have the chance to earn the highest returns. It also contains provisions that Republicans say will reduce costs associated with seeking capital by "appropriately tailoring regulations for small businesses."  

The bill also attempts to enhance retail investor access to opportunities by preventing them from being excluded in certain situations. There are provisions in the bill that would boost investor protection and privacy that would update outdated statutory and regulatory provisions.  

The proposal has the support of several business groups, including the Small Business and Entrepreneurship Council and Americans for Prosperity, according to a release from the Republican lawmakers.