Terri Sewell: “Today, I rise in support of H.R. 2274, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act…”

“Today, I rise in support of H.R. 2274, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2013. H.R. 2274 provides a much-needed exemption and clarification for current M&A brokers who perform services in connection with the transfer and ownership of small- and medium-sized businesses in privately negotiated transactions. Small- and medium-sized businesses play a critical role in our economy. They provide jobs, they spur innovation, and they strengthen our overall economy. In fact, over the past decade and a half, America's small businesses and entrepreneurs have created 65 percent of all new jobs in this country. As businesses grow, many small- and medium-sized businesses reach a point where they want to and need to expand their businesses. They turn to mergers and acquisition professionals to facilitate such sales. Currently, M&A brokers who facilitate the private sale of small- and medium-sized privately owned companies must register with the SEC. SEC registration as a broker also requires membership in FINRA--the Financial Industry Regulatory Authority. The burdens and costs of initial broker-dealer registration and ongoing compliance with both SEC and FINRA requirements are substantial. These costs adversely impact and unnecessarily increase the costs that business owners incur to sell, buy, or grow their small- and medium-sized businesses. H.R.…”