Minneapolis Review

Washington, D.C. – On April 27, 2023, the House Financial Services Committee passed three bills led by Majority Whip Tom Emmer (MN-06). The legislation, including the Small Business Entrepreneurs Empowerment and Development (SEED) Act (formerly H.R. 2201 in the 115th Congress), the CFPB Dual Mandate and Economic Analysis Act and the CFPB Whistleblower Incentives and Protection Act, were passed during a markup session on Wednesday.

“We are making good on our promise to support America’s small businesses and everyday investors,” Emmer said. “These bills will provide much-needed certainty in the capital formation process and ensure that our federal government is working to advance the needs of Minnesotans and the American economy.” 

Background

The Small Business Entrepreneurs Empowerment and Development (SEED) Act encourages investment in small businesses by affirming that they are not in violation of the law when doing a non-public securities offering if each investor has a substantive pre-existing relationship with an owner, there are 35 or fewer purchasers, or the amount does not exceed $500,000.

The CFPB Dual Mandate and Economic Analysis Act amends the mission of the CFPB to direct its attention to competition and consumer choice while maintaining an emphasis on fairness and transparency. The bill establishes an Office of Economic Analysis at the agency to review all proposed and existing rules, orders, guidance and regulations to identify both the problem solved by the action and how the action would impact consumer choice, price and access to financial products.  

The CFPB Whistleblower Incentives and Protection Act requires the agency to provide awards to whistleblowers who report information in relation to a violation of consumer financial law resulting in sanctions exceeding one million dollars. The bill would also establish requirements regarding the legal representation of whistleblowers, including allowing for whistleblower confidentiality. 

Original source can be found here.