Chamber Applauds SEC For Considering an Extension of SOX for Small Business

Again Calls for One-Year Delay of Section 404(b)

WASHINGTON, D.C.-Following testimony before the House Small Business Committee, the U.S. Chamber of Commerce today applauded Securities and Exchange Commission Chairman Christopher Cox for announcing plans to consider granting a one-year extension of Sarbanes Oxley Section 404(b) for small businesses.

"We have been arguing for some time that Section 404 places a heavy burden on small businesses," said Michael Ryan, senior vice president and executive director of the Chamber's Center for Capital Markets Competitiveness. "We are happy to see that our voice has been heard and that the SEC will consider a delay."

In his testimony, Ryan said that the implementation of Section 404 has led to costs and regulatory burdens far beyond what Congress intended and well in excess of the benefits to shareholders and management. This is amplified among smaller public companies due to economies of scale.

The Chamber submitted comments to the Securities and Exchange Commission and the PCAOB in February expressing concerns over continued ambiguity within SOX Section 404 and its harmful impact on smaller companies. It also recently released a report showing that, despite recent reforms, SOX Section 404 disproportionately burdens small businesses. Additionally, the Chamber testified in June before the House Small Business Committee on the same subject calling for action.

"Delaying Section 4049(b) needs to happen now if it is to maximize the benefits and really help Americas small businesses," said Ryan. "This is a big step forward in bringing balance back into the practice of governing our capital markets."

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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