I have signed into law H.R. 7554, the Small Business Investment Incentive Act of 1980. This new law will facilitate the financing of small businesses by providing needed reform of the Federal securities laws.
Small businesses are essential to economic growth and to innovation. No effort is more difficult for small businesses nor more crucial to their success than raising investment capital.
This legislation will provide a new statutory framework to streamline legal structures and encourage venture capital to invest in small businesses.
The legislation will also scale down or eliminate various paperwork and procedural requirements and reduce the regulatory and statutory constraints faced by small businesses when raising capital directly in the financial markets.
In addition, this legislation requires increased communication and, consequently, better coordination among the Federal agencies concerned with the financing of small businesses.
The act adds to the many other efforts of my administration to assist small businesses. It contributes to increased investment in our economy, to the elimination of needless and wasteful regulation, and to improved productivity through innovation.
I want to thank Senators Proxmire, Sarbanes, Nelson, Tower, and Lugar, Congressmen Staggers, Scheuer, Broyhill, and Eckhardt, and Chairman Williams and Commissioner Friedman of the Securities and Exchange Commission for their leadership and hard work in drafting and securing passage of this valuable legislation.