Morelle backs bipartisan bill to boost small businesses; measure passes House, heads to Senate

Rep. Joe Morelle said Wednesday he voted in favor of bipartisan legislation aimed at strengthening small businesses and expanding investment opportunities, a bill that has now passed the U.S. House of Representatives and awaits consideration in the Senate.

Congressman Joe Morelle

The measure, known as the Incentivizing New Ventures and Economic Strength Through Capital Formation Act, or INVEST Act, cleared the House on a bipartisan vote and is designed to modernize federal capital-formation rules that supporters say have long favored wealthy investors while limiting access to capital for small businesses and startups, particularly those outside major metropolitan areas.

“Small businesses are the cornerstone of our economy—providing good-paying jobs for families and high-quality goods and services to our neighborhoods,” Morelle, a Democrat representing New York’s 25th Congressional District, said in a statement. “I was proud to help pass the bipartisan INVEST Act and urge my colleagues in the U.S. Senate to swiftly consider this legislation.”

According to Morelle’s office, existing capital-market regulations have restricted investment opportunities to a narrow group of high-net-worth individuals, making it more difficult for entrepreneurs to raise growth capital. At the same time, the number of publicly traded U.S. companies has declined, reducing options for both investors and business owners.

The INVEST Act seeks to address those challenges by expanding the definition of an accredited investor to include individuals who qualify based on financial knowledge, credentials or professional experience, rather than wealth alone. The bill would also increase the allowable size and investor limits of certain venture-capital funds, directing more capital to early-stage businesses.

Additional provisions would expand regulated private-market investment options for retirement savers by aligning 403(b) plans with choices already available in 401(k) plans. The legislation would also create dedicated small-business offices within the Securities and Exchange Commission to identify regulatory barriers, streamline processes and improve coordination across capital-formation divisions.

Morelle said his support for the INVEST Act reflects his continued focus on strengthening Rochester’s business community and ensuring small businesses have the tools they need to grow.

The bill must still be approved by the Senate and signed by the president before becoming law.