Wednesday, May 29, 2024

Kennedy introduces bill to help small businesses access capital markets

by BIZ Magazine

WASHINGTON – Sen. John Kennedy (R-La.) today introduced the Main Street Growth Act to expand small companies’ access to capital markets.

“Small business owners work hard to serve their communities. Their challenge is that these job creators can’t easily access existing capital markets. The Main Street Growth Act would give smaller companies a way to list on their own specialized exchanges, where they would be more visible to investors. These exchanges would promote growth in America’s economy by better meeting the needs of small business owners, their employees and investors,” said Kennedy. 

Small companies often have difficulty accessing capital markets because their stocks are less visible and are traded less frequently than the stocks of larger companies. 

The Main Street Growth Act would create tailored, dedicated exchanges known as “venture exchanges” for trading stocks in smaller companies. Giving small companies their own specialized exchanges would increase their visibility and access to capital. Venture exchanges would also give investors more access to the potential growth opportunities that small companies offer. 

Listing on a venture exchange would be completely optional for small businesses, start-ups and emerging growth companies that qualify under the bill. 

Text of the Main Street Growth Act is here.

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