Subcommittee Examines Legislative Proposals to Further Reduce Impediments to Capital Formation
October 23, 2013 -
Today the House Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee examined legislative proposals to further reduce impediments to capital formation so companies can grow and create jobs.
Barely one year after its passage — and despite the SEC’s halting progress in writing the rules needed to implement it — the bipartisan JOBS (Jumpstart Our Business Startups) Act is already working and making it easier for smaller companies to access capital markets. But more needs to be done to open U.S. capital markets to small businesses and Emerging Growth Companies.
“Data continue to flow in on the early impact of the JOBS Act and the results are very encouraging. Thanks in large part to the law’s self-executing ‘IPO on-ramp’ provisions, this is shaping up to be the best year for IPOs since 2007, with more than 150 through the first three quarters and counting,” said Subcommittee Chairman Scott Garrett (R-NJ).
Following a series of hearings in which the Financial Services Committee solicited suggestions for removing the regulatory and statutory impediments to capital formation, today’s hearing reviewed seven specific legislative initiatives to eliminate unnecessary and unduly burdensome barriers to capital formation that make it hard for small companies to raise capital.
“On top of the JOBS Act, more can and should be done to help small businesses raise much-needed capital to grow and create more jobs during this period of record-breaking government red tape, tepid economic growth, and persistently-high unemployment,” Garrett added.