On Tuesday, March 27th, the U.S. Senate passed a bill allowing smaller companies to go public and be traded on the stock exchange. The Senate passed this bill 380, 41, which sends this bill straight into the hands of the President Obama. This roll back measure relaxes some of the Securities and Exchange Commission’s regulations placed on companies wishing to initiate an IPO or public offering.

This is a outstanding victory for entrepreneurs and small companies who have been after Washington to reduce the miles of red tape that has been stilting job creation, economic growth, and innovation. This would mean that small and/or medium-sized companies that earn less than one billion dollars in gross revenue, can seek to go public, which basically provides the companies up to five years, or until gross revenue exceeds one billion, to supply certain investor disclosures and an independent audit.

As with any bill passed by the Senate, there are those for it, and those against it. The critics are saying that the one billion dollar threshold allows about 80% of companies going public to bypass the disclosure, while other say it makes is easier for companies with 2,000 or more shareholders to bypass registering with the regulators, plus is makes it tougher for CEOs to reap bonuses, thanks to skyrocketing stock prices.

All in all, this bill does make it more appealing for people who are interested in starting a business or looking into a franchise opportunity. This bill would enable them to go public sooner, which would in turn allow these small and medium-size companies to solicit investors much quicker than ever before. This would be a great advantage for those interested in franchise companies. With the passing of this bill, companies can now use advertisements when they go public, formerly prohibited, which will enable them to raise a greater amount of money from unsophisticated investors.