Greenlighting Growth Act

Floor Speech

Mr. Speaker, as a special accommodation for their smaller size and to reduce their regulatory burden, emerging growth companies, known as EGCs, are typically only required to provide 2 years of audited financials when they first go public. Other public companies, on the other hand, are required to provide 3 years of audited financials when they go public. In some situations, an EGC must provide 3 years of financials, such as an EGC acquiring another company or conducting a follow-on offering after its IPO.

This bill will eliminate this regulatory hurdle by ensuring EGCs only need to provide 2 years, not 3, of audited financials across the board, whether for an IPO, an acquisition, or a follow-on offering.

This bipartisan legislation will further reduce the burden on EGCs trying to raise capital, cutting red tape and burdensome regulations to help unleash economic growth.

Mr. Speaker, when emerging growth companies were created during the bipartisan JOBS Act nearly a decade ago, the goal was to make it easier for new companies to access capital with less red tape while still ensuring their investors have critical disclosures.

This bill ensures that EGCs are treated consistently by balancing the need for financial transparency while also ensuring burdensome regulations are not so high that it stifles innovation and hinders growth.

I thank Mr. Haridopolos for his bipartisan leadership on this legislation.

Mr. Speaker, again, I urge my colleagues to support this bill, and I yield back the balance of my time.

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