Resources for Contacting Your Senators About Saving Startup Seed Financing and Angel Investing

The Angel Capital Association has gathered some useful links to make it easier for entrepreneurs, angels and other startupers to let their US Senators know that startupland supports SA 4037.

Here is a link to the web form mail templates for each US Senator. The ACA has a model form of letter that you could use or borrow from, too.

I live in Washington State, so I have written Senator Murray to ask her to support the amendment. I also wrote Senator Cantwell to thank her for her leadership on this. It makes sense that a senator from Washington State would vote to save startup innovation, angel investing and job creation, as Seattle and other parts of the state thrive on this economic and intellectual activity. But insofar as most new jobs throughout America are created by new businesses, it makes sense for senators from every state to support SA 4037.

Background on the Amendment: SA 4037 is a quiet but vital amendment to the complicated Wall Street reform bill currently occupying center stage in the Senate. Introduced by Senator Bond of Missouri, the amendment is co-sponsored by Senators Cantwell of Washington, Warner of Virginia, and Brown of Massachusetts. As Irene Tamaru points out, this roster of sponsors reflects bi-partisan support and bodes well for the amendment's prospects. At the same time, Senate leadership has been signaling that they want debate to conclude soon, and so the time is now to let your Senators in Washington DC know that you care about startup innovation, angel investing and job creation in the US.

What the Amendment Fixes: As Joe Wallin blogged yesterday (I'm quoting three of Joe's four bullet points),  

• the amendment does away with the ridiculous and industry killing 120 day wait period [called for in the main Wall Street reform bill; current law, "Reg D," has no wait period];
  
• the amendment does away with the "go back in time" provision, which would have re-adjusted the accredited investor financial thresholds in a way that would have wiped out 2/3rds of existing angel investors qualifying as "accredited investors";[and]
  
• the amendment adds "bad boy" provisions to Rule 506 offerings.