South Iowa News

Representative Zach Nunn of Iowa and Representative Janelle Bynum of Oregon have introduced the Encouraging Local Emerging Ventures and Economic Growth Act (ELEVATE) Act. This bipartisan legislation aims to simplify the process for small and mid-sized businesses seeking capital through Initial Public Offerings (IPOs).

Currently, companies must submit three years of audited financial statements to the Securities and Exchange Commission (SEC) when going public, even if they are only spinning off a part of their business. The ELEVATE Act proposes changes to this requirement.

“When investment capital gets trapped on the coasts by large firms and D.C. regulators, it’s Iowa’s small businesses that suffer,” said Rep. Nunn. “The ELEVATE Act is a commonsense fix that would level the playing field for Iowa businesses who look to outside investment to grow their business. It’s time we let Main Street play by the same rules as Wall Street.”

“Oregon’s small businesses deserve a fair shot to start up, grow, and compete,” said Rep. Bynum. “The ELEVATE Act will cut through the red tape, making it easier for local entrepreneurs to get off the ground and into the marketplace. I’m proud to introduce a bill that ensures our policies work for the people who are building Oregon’s – and America’s – economy by supporting innovation, growth, and greater access to capital for small businesses.”

Emerging growth companies (EGCs), as classified by the SEC, currently face stricter reporting requirements than other IPOs. They must provide an additional year of audited financial data, which can be costly and time-consuming.

The ELEVATE Act seeks to amend the Securities Exchange Act of 1934 by aligning financial disclosure requirements for all EGCs. It allows qualifying companies to submit two years of audited financials instead of three, thus providing a more level playing field for firms launching an IPO or spinning off part of a parent company.

The legislation enjoys strong bipartisan support and was unanimously passed by the House Financial Services Committee in the 118th Congress.