The U.S. House of Representatives passed bipartisan legislation recently that allows small businesses to spend capital toward creating jobs instead of compliance. H.R. 4, known as the Jobs for America Act, contains two Financial Services Committee bills designed to provide regulatory relief: H.R. 1105, known as the Small Business Capital Access and Jobs Preservation Act, and H.R. 2274, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act.
H.R. 1105 makes a correction to the Dodd-Frank Act. The revised statue allows small and medium-sized businesses to use capital toward creating jobs instead of unnecessary compliance costs. Also under the new law, private equity fund advisers are exempt from SEC registration if the outstanding principal amount of the funds under management does noes not exceed twice their funded capital commitments. H.R. 2274 is similar to H.R. 1105 in that it eliminates expensive compliance costs and SEC registration requirements for certain specialized brokers and allows the capital saved to go toward the creation of jobs.
Leading U.S. economic indicators took a small step forward in August, backing off from larger increases recorded during the summer. The Conference Board's Leading Economic Index increased 0.2 percent last month to 103.8, half the increase expected by economists. The index grew 1.1 percent in July and 0.7 percent in June. The group's measure of current economic indicators also edged up 0.2 percent, slightly better than July's gain as personal income, employment, and retail sales continued to make strides.