New Business Preservation Act

House Bill 6403 - New Business Preservation Act: Overview, Status, and Impact

Hozzl · 2022-02-08T23:17:24Z

Explore the details of House Bill 6403 New Business Preservation Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Commerce. Stay informed on legislative developments.

2/8/2022, 11:17 PM

Congressional Summary of HR 6403

New Business Preservation Act

This bill establishes and provides funding for the Innovation and Startups Equity Investment Program, through which the Department of the Treasury shall work with states to invest in new businesses.

Specifically, the bill requires Treasury to provide certain funds to participating states, which such states shall use to administer specified approved programs that provide equity investment in new businesses. Certain areas with high levels of venture capital activity are excluded from the calculation of funds allocated to a participating state. Treasury shall also award funds to approved state programs to provide follow-on investments.

If a state receives funds from an exit, the state shall use such funds to further invest in startups under the approved program. An exit is defined as the (1) acquisition of a startup in which a state has invested under the program; (2) sale of a share of such startup following an initial public offering; or (3) voluntary purchase of a state's ownership interest by the startup, investors, or existing shareholders.

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Current Status of Bill HR 6403

Bill HR 6403 is currently in the status of Bill Introduced since March 26, 2020. Bill HR 6403 was introduced during Congress 116 and was introduced to the House on March 26, 2020. Bill HR 6403's most recent activity was Referred to the House Committee on Financial Services. as of March 26, 2020

Bipartisan Support of Bill HR 6403

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 6403

Primary Policy Focus

Commerce

Potential Impact Areas

- Accounting and auditing

- Advanced technology and technological innovations

- Advisory bodies

- Business investment and capital

- Congressional oversight

- Department of the Treasury

- Financial services and investments

- Government lending and loan guarantees

- Government studies and investigations

- Intergovernmental relations

- Minority and disadvantaged businesses

- Product development and innovation

- Public contracts and procurement

- Securities

- Small business

- State and local finance

- State and local government operations

- User charges and fees

Alternate Title(s) of Bill HR 6403

New Business Preservation Act

To establish the Innovation and Startups Equity Investment Program in the Department of the Treasury, through which the Secretary of the Treasury shall allocate money to certain States to assist high-potential scalable startups access venture capital to commercialize innovations, create jobs, and accelerate economic growth, and for other purposes.

New Business Preservation Act