ELEVATE Act of 2025

Mr. Speaker, I thank Chairwoman Wagner for leading this charge on a bipartisan effort.

I rise today to support our bipartisan ELEVATE Act. I helped lead this Small Business effort to help not only the heartland but also our entrepreneurs and innovators across the country.

Let me start by saying we all know this to be true: The American capital markets are the envy of the world. Part of that strength comes from the bipartisan work of this very Chamber, particularly with the passage of the JOBS Act 13 years ago.

One of the biggest successes of that law was the creation of the emerging growth companies, or EGCs, to encourage smaller companies to go public here right in the United States.

The JOBS Act didn't expand just that opportunity, it created new jobs. In the 4 years after that change, EGCs made up 90 percent of our initial public offerings. Moreover, it created 82,000 new jobs, new careers, right here in the U.S.

I believe we can't stop there. Across Iowa's Third District, my home district, I hear from small business owners who want to reinvest in new equipment, help expand their workforce, and give back to their communities through new innovation.

The question remains: What is holding them back? Well, Mr. Speaker, it is quite simply a deck that has been stacked against them by SEC rules that make accessing investment capital complex, more expensive, and harder for those who don't live on the East or West Coast who snap up the lion's share of investment dollars before it can even get to the heart of the heartland.

Iowa's businesses, America's businesses, deserve an equal opportunity to access the capital they need to grow right on Main Street. These businesses are not backed by billion-dollar valuations or teams of high-powered lawyers. What they do have is grit, innovation, and the drive to succeed. They are not asking for special treatment, Mr. Speaker, just a fair chance to compete.

Imagine the economic momentum we could unleash right here if we made it easier for those businesses to connect with investors and bring them to the rest of America.

That is why I introduced the ELEVATE Act. This bill makes a simple, commonsense fix to help level the playing field for growing businesses. In Iowa, you know baseball is big business. When you have the opportunity to build it, Mr. Speaker, they will come, just like ``Field of Dreams.''

It allows EGC spinoffs to file confidentially with the SEC, requiring 24 months of audited financials rather than the historic 36 months that had red tape and additional costs. This ensures quality while minimizing the impact.

These changes align to the rules so that all EGCs, whether standalone or part of a larger spinoff, can compete.

Mr. Speaker, quite simply, this is about fairness. It allows small businesses in rural America to play by the same rules as companies on Wall Street. It is about giving a startup in Pella the same shot as a company in Palo Alto.

It is about jobs, real jobs right here at home.

We know the JOBS Act worked. Now, we have a chance to build on that success. By passing the ELEVATE Act, we make it easier for Main Street businesses to get access to the capital they need.

I thank my colleagues on the other side of the aisle, particularly Representative Bynum, for working with me to ensure that we give every American business a fair chance at success. I thank Chairman Hill for his leadership on the Financial Services Committee, and I thank subcommittee chairwoman Ann Wagner who knows capital markets probably better than anyone on this House floor.

Mr. Speaker, I urge my colleagues to support the bipartisan ELEVATE Act.

Mr. Speaker, I yield myself such time as I may consume.

This bill illustrates what I said earlier today, that the most fascinating issues are those that involve accounting and auditing.

Mr. Speaker, I rise in support of H.R. 3301, the ELEVATE Act of 2025, sponsored by the gentlewoman from Iowa (Mr. Nunn).

Emerging growth companies, also known as EGCs, are a special type of public company that we created during the bipartisan JOBS Act of 2012. Unlike full-fledged public companies, EGCs only need to provide 2 years of audited financials when they conduct their initial public offering, also known as an IPO.

Despite this special 2-year accommodation, there are some instances where an EGC, emerging growth company, is still required to provide 3 years of financials, still required under present law. One such instance is when the EGC conducts a spinoff, which is a transaction in which one company creates a new, independent company by selling new shares of its existing business. So the one company becomes two separate companies through a spinoff transaction.

Mr. Nunn's bill reduces this obligation for EGC spinoffs to 2 years. That is only 2 years of audited financials, keeping in line with what is required when the EGC itself goes public.

In doing so, this bill streamlines the financial disclosure obligations for emerging growth companies across the board making it easier for them to raise capital from the public.

Mr. Speaker, I urge my colleagues to vote ``yes'' on this important bill, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

I commend the gentleman from Iowa (Mr. Nunn) on this bill. I urge my colleagues to support the ELEVATE Act of 2025, which would streamline accounting disclosure requirements and auditing requirements for emerging growth companies, also known as EGCs, so those EGCs only need to provide 2 years of audited financial statements across the board.

Like other bills that Democrats and Republicans have come to bipartisan agreement on, this bill balances the concern of those trying to raise capital while also maintaining disclosures and financial transparency that benefit and protect investors and thereby protect our capital markets, which so many speakers have pointed out are the envy of the world.

Mr. Speaker, I ask my colleagues to vote ``yes'' on this bill, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3301) to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confidential review, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on this bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in strong support of H.R. 3301, the ELEVATE Act, and thank Congressman Nunn for his leadership on this forward- looking and bipartisan bill.

One of the key successes of the JOBS Act of 2012 was the creation of emerging growth companies, or EGCs, small and midsized firms given tailored disclosure requirements to encourage them to go public. These companies are a major source of innovation, job creation, and economic growth.

Today, over 90 percent of initial public offerings are filed by EGCs, but when an EGC spins off part of its business to create a new public company, that spinoff does not currently get the same treatment, despite originating

from a company already recognized as an emerging growth company.

H.R. 3301 fixes this inconsistency. It ensures that spinoffs from EGCs are allowed to provide 2 years of audited financials, just like when a standard EGC goes public. This helps reduce redundant compliance costs while maintaining full investor protections.

This is a smart and targeted update to our securities laws. It honors the original intent of the JOBS Act: to make it easier, not harder, for innovative companies to enter the public markets.

Mr. Speaker, I urge my colleagues to support Mr. Nunn's ELEVATE Act, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Iowa (Mr. Nunn), my friend.

Mr. Speaker, Mr. Nunn's ELEVATE Act is a smart, targeted update to our securities law.

I urge all my colleagues to support H.R. 3301, and I yield back the balance of my time.