WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, introduced the Greenlighting Growth Act, legislation that removes unintended regulatory hurdles that keep small and high-growth businesses from expanding, creating jobs, and spurring innovation. The bill clarifies financial reporting requirements for small public companies and removes unnecessary compliance barriers that have been holding America’s innovators hostage to burdensome red tape.
The Greenlighting Growth Act also strengthens and modernizes federal securities law to ensure that Emerging Growth Companies (EGCs) can continue using the streamlined disclosure rules Congress created under the bipartisan Jumpstart Our Businesses Startups (JOBS) Act of 2012, which assists countless startups in bringing new products, new ideas, and greater job growth to the American people.
“Small businesses are the backbone of our nation’s economy, and they should not be punished for trying to grow. The Greenlighting Growth Act cuts through the Washington noise by removing unintended regulatory roadblocks and keeps America at the tip of the spear when it comes to innovation and entrepreneurship,” said Kennedy.
Kennedy’s legislation is the U.S. Senate companion to Rep. Mike Haridopolos’ (R-FL-08) bill, H.R. 3343, which passed out of the U.S. House Financial Services Committee by an overwhelming 49-2 vote on May 20, 2025, and passed the full U.S. House of Representatives on July 20, 2025.
“I am honored to partner with Senator Kennedy on this bill to cut red tape for small and medium-sized companies. Emerging Growth Companies are an engine of innovation and job creation across this country. This legislation removes a needless roadblock and sends a clear message that Congress is committed to smart reforms that reward innovation, fuel growth, and keep America the best place in the world to start and grow a business,” said Haridopolos.
Background:
The Jobs Act of 2012 created the ‘Emerging Growth Company’ designation to help small companies access public markets without drowning in compliance costs. Under current law, EGCs – defined as companies earning less than $1.235 billion annually – can go public using simplified SEC filing requirements, including a two-year audited financial reporting window.
But when these companies try to grow through acquisitions, the law is unclear. The SEC can suddenly demand extra years of audited financial data, slamming the brakes on expansion and injecting costly regulations for small businesses into the process.
The Greenlighting Growth Act ends this ambiguity by providing clear rules, reducing unnecessary compliance burdens, and giving small businesses the freedom to grow expeditiously.
Full text of the Senate bill is available here.
Full text of the House companion bill is available here.
