Cortez Masto, Ricketts Introduce the ELEVATE Act to Unlock Capital for Small Businesses

Washington, D.C. - Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Pete Ricketts (R-Neb.) introduced the bipartisan Encouraging Local Emerging Ventures and Economic Growth (ELEVATE) Act to reduce bureaucratic red tape on small and mid-sized companies that want to spin off a part of their business as an Emerging Growth Company (EGC).

"The federal government should be making it easier for emerging businesses to grow and innovate, not harder," said Senator Cortez Masto. "By improving coordination and cutting red tape, our ELEVATE Act will lead to greater innovation across Nevada, Nebraska, and the rest of the United States."

"Nebraska businesses are the economic center of communities across the state," said Sen. Ricketts. "Red tape and regulations force smaller companies to compete on an unlevel playing field. When we make it easier for small enterprises to unlock available capital, they thrive and drive our local economies forward."

Under current law, companies must submit 3 years of financial statements to the Securities and Exchange Commission (SEC) when splitting from an existing business to become an EGC. Obtaining an extra year's worth of financial data is costly and often prevents smaller firms from getting the capital they need to grow. The ELEVATE Act would allow businesses to submit two years of audited financial statements to spin off a part of their existing business as EGC - aligning financial disclosure requirements for all EGCs. By lessening these requirements, smaller companies will have more available capital to expand their operations.

Read the full bill here. Companion legislation was introduced in the House by Representatives Zach Nunn (R-Iowa-03) and Janelle Bynum (D-Ore.-05). The bill passed the House last June.

Senator Cortez Masto is a champion for Nevada's small businesses. Last year, the Senator introduced bipartisan legislation to ensure America's small businesses can compete in the 21^st Century economy and bipartisan legislation to make it easier for the SEC to collect information on small businesses. Additionally, Cortez Masto introduced a bipartisan bill to require the SBA to provide annual awards to state and local governments that streamline the process of small business formation. She also stood with small businesses in Southern and Northern Nevada to highlight the devastating impacts the chaos of the Trump Administration's tariffs have had on the cost of operating small businesses and on the American economy itself. In DC, she hosted a spotlight hearing to speak with small business owners about the squeeze they are feeling from the tariffs.

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