Washington, D.C. – Rep. Tom Graves (R-GA-14) issued the following statement after voting in favor of the Supporting America’s Innovators Act (H.R. 1219), bipartisan legislation encouraging venture capitalists to invest in rural entrepreneurs:
“Small businesses and the entrepreneurs that create them are the backbone of our nation’s economy. But the Great Recession and the overregulation that followed has made it harder for entrepreneurs to access the capital necessary to start or expand their business, especially in rural areas like Northwest Georgia. This bill makes reforms that encourage venture capitalists to invest in rural small businesses, which will help create good-paying jobs in rural communities throughout Georgia and across the country.”
H.R. 1219 increases the number of people who can invest in certain venture capital funds before the funds must register as “investment companies” with the Securities and Exchange Commission (SEC) from 100 to 250. In rural areas where smaller investors are prevalent, the current cap of 100 people discourages venture capitalists from establishing investment funds.
H.R. 1219 passed the House by a vote of 417 to 3.