Small Business vs. Congress
Published by Bob Foster
How many new business entrepreneurs are aware that “The Restoring American Financial Stability Act of 2010″ that was passed by the Senate in May, contained legislation that would virtually cripple Angel investments? As the bill stood just before passage, it would have required a 120-day regulatory (federal) review of Angel deals, double the net worth standard for Angel certification, increase the income standard from $200,000 to $450,000 per year for certification, and demand more red tape and regulatory review at the state level.
Were you aware of any this going on in the Senate?
It doesn’t take a great deal of analysis to realize that this legislation would have wiped out a large segment of available new business startup money. (An Angel cannot invest in your business without certification as a qualified investor.) Washington acts (regardless of the rhetoric) as though America no longer needs any small business startups.
Fortunately, Senator Kit Bond (R-Mo) came forward in time to write and force passage of an amendment that “postponed” most of the Angel Investor legislation for four years. One of the regulations that remains is the elimination of the inclusion of an investor’s home in the $1 million dollar net worth calculation required to be certified as an Angel Investor.
Another bullet dodged (just) by small business. It is obvious the people on Wall Street control the folks in Congress, and few of either of them has much regard for the small business entrepreneur.
It is up to each and every small businessperson to stay vigilant and be aware of what is happening in Washington…and then make our voices heard. No one else will do it for us.
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