CompTIA Believes Small Businesses Could Be Negatively Impacted By Senate Bill
Written by Jenna Weiner
The IT trade association CompTIA says a bill before the U.S. Senate could have unintended consequences for small businesses.
The information technology trade association CompTIA has voiced concern that financial reform currently before the U.S. Senate could contain bad news for small businesses. The association believes that two specific sections of the proposed Restoring American Financial Stability Act of 2010 could stifle the innovation and entrepreneurship of startup companies.
The group's vice president of public advocacy, Elizabeth Hyman, said CompTIA is "concerned that certain provisions contained in this legislation would effectively cut off early-stage angel investors who provide a critical source of funding for startups, small businesses and other entrepreneurs."
In a letter sent to members of the U.S. Senate, CompTIA has suggested two amendments to the act. These amendments would maintain the existing $1 million cap on asset requirements for qualified business investors and eliminate a 120-day SEC review of the funding process.
Hyman explained that the amendments would ensure access to a strong pool of angel capital for entrepreneurs and better protection from fraud for investors.
The Restoring American Financial Stability Act of 2010 seeks to improve the transparency and accountability of the country's financial system. The bill also intends to end bailouts and protect consumers from abusive financial practices.
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