Schumer, Toomey Aim To Help Small Businesses Go Public

By Adrianna McGinley

Sens. Chuck Schumer (D-N.Y.) and Pat Toomey (R-Pa.) introduced bipartisan legislation Thursday they say will create jobs by facilitating the private-public transition for small businesses.

The duo agreed small and medium size businesses are essential for economic recovery, yet face tough obstacles when pursuing an initial public offering (IPO).

“Capital formation and access to capital is the single biggest and most important factor in driving economic growth and job creation,” Toomey said. “Without a doubt one of the very best and most efficient sources of capital is the public equities market, well you can’t access the public equity markets until you do your IPO.”

With the number of IPOs declining in recent years, the legislation would create a temporary “on-ramp” for small businesses to go public, phasing in costly IPO regulations as the business grows.

A new category of “emerging growth companies”, with less than $1 billion in annual revenue and $700 million in publicly traded shares, would be created. The companies would have a maximum of five years to make the transition, which could be cut short should the company meet either of the limits set forth.

Roughly 11 to 15 percent of companies, at any given time, would be eligible for the program, Schumer said, and with 79 percent of companies reporting lack of access to the IPO market for small companies and 90 percent of job creation occurring post IPO, this type of legislation “should be our focus.”

The Democratic senator cited LinkedIn as an example of a small company that has doubled its workforce since going public in May and expects many others would follow under the new program.

“The NYSE said the bill ‘would have the largest impact’ on job creation when compared to several similar proposals that have been debated,” Schumer cited.

On top of having bipartisan congressional support, the legislation was approved by the NY Stock Exchange, NASDAQ, and the IPO Task Force.

“We hope that this nice little proposal can help bridge the partisan divides in the Congress and have a real impact on job creation,” Schumer said. “We tried to take the things where you get the most bang for the buck, the least opposition, and ability to get something done.”

“I’m often asked…is there anything you guys can agree on,” Toomey added. “Here’s an example of something very specific, very concrete, very constructive, and very pro-growth on which we do agree…This is just a very constructive thing we can do, it’s not going to cost the taxpayers a dime, and it is assuredly going to create jobs.”

Bipartisan Commission Tasked With Shaping Housing Recovery

By Adrianna McGinley

The Bipartisan Policy Center introduced a new Housing Commission led by former Cabinet members and senators that has been tasked with giving lawmakers policy suggestions for long-term housing wellness.

Former U.S. Senators Kit Bond, George Mitchell, and Mel Martinez; and Henry Cisneros, former HUD Secretary under President Clinton, will serve as co-chairs of the commission that was touted as an idea generator to solve the lingering housing issues plaguing the country. 

Mitchell jokingly said the bipartisan commission “does not have the luxury” of proposing solutions that will not be able to pass in Congress. Instead, Mitchell said he had high hopes that his new team will be able to “assist those in office by demonstrating that it’s possible to come up with a meaningful, practical solution that is deliberately bipartisan in nature.”

One notion that members of the commission came to consensus on was that the revival of the housing market and job creation are linked and should both be considered when designing a path to recovery. 

“I don’t think you can have a meaningful jobs recovery without improvement in the housing sector and I think the reverse is true as well,” Mitchell said.

Cisneros in addition emphasized the importance of addressing homelessness when debating housing policy.

“It’s an example of where we can’t allow other things to be eliminated because they involve real people and real pain,” Cisneros said.

He also acknowledged the role immigration reform could play in boosting the housing market saying he believes immigrant populations will provide the spark the housing market is looking for.

“I suspect that one of the really big surges in the market for housing going forward is going to be the immigrant population,” Cisneros said. “We’re blessed in this country to have that rich infusion of workers and talent and many of them completely believe in the American dream, their definition of the American dream is home ownership.”