Chairman Hensarling Delivers Remarks on Bipartisan JOBS Act 2.0 and Regulatory Relief Bills
November 14, 2013 -
WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) today delivered the following statement during the committee’s consideration of bipartisan bills that will comprise the JOBS Act 2.0 and provide regulatory relief to community financial institutions:
The committee meets this morning to consider several bipartisan bills that are designed to promote a stronger, healthier economy and more jobs for the American people. I’m pleased to announce that several of these bills, combined with others the committee will soon consider in a subsequent markup, will comprise the basis of a JOBS Act 2.0.
Like its predecessor, the bipartisan JOBS Act passed by Congress and signed by the president last year, these proposals we will consider today recognize that small businesses are at the forefront of innovation and job creation, and that the growth and success of these smaller companies is essential if America is to experience a truly sustainable economic recovery that creates good-paying jobs with futures for the American people.
And yet we know these very same small businesses that we are counting on for entrepreneurship and job creation are simply suffering under the sheer weight, volume and complexity of Washington regulations that stand in the way of their growth and their success.
Among the most significant obstacles that small companies face are regulatory barriers between them and our capital markets- vital capital that they must have to open their businesses, keep them open and to expand their jobs base. The JOBS Act has already reduced some of these barriers for emerging growth companies. For example, according to published reports, the online travel site Kayak, discount retailer Five Below and more than 40 different biotechnology companies were able to go public thanks to the JOBS Act. Perhaps most famously, Twitter was able to navigate some regulatory hurdles due to the JOBS Act so it could go public. Hashtag more jobs for the American people.
Why is this so important? Because, as the National Venture Capital Association tells us, 92% of job growth of young companies occur after their IPOs, their initial public offerings.
For the unemployed single mom, the laid off factory worker or the young college grad struggling to find her first job, job growth isn’t about numbers and statistics. It’s about starting a new, a better, and a more secure life for themselves and their families. Truly, what could be more important?
While these early successes of the JOBS Act are encouraging, Congress can and must do more during this period of little-or-no growth in our economy, continued high unemployment and regrettable, record-breaking red tape.
As we’ve recently heard from witnesses who appeared before the Capital Markets Subcommittee, many of these regulations regarding capital formation were actually written for far, far larger companies. But as is often the case in the nation’s capital, Washington imposes a “one-size-fits-all” rules on the private sector. Thus the burdens of these regulations that were written for many big businesses on Wall Street fall most heavily on small businesses on Main Street.
As part of the JOBS Act 2.0, today we will consider three bipartisan bills that will further reduce regulatory roadblocks impeding small business success and the creation of more jobs.
H.R. 1800 offered by Mr. Grimm, will increase the ability of Business Development Companies to lend to small businesses and help ensure the flow of capital to Main Street. I note that the gentlelady from New York, Ms. Velazquez, has championed this cause in the past and has a similar bill that she has introduced herself.
H.R. 2274 sponsored by the gentleman from Michigan, Mr. Huizenga, and the gentleman from New York, Mr. Higgins, will streamline and simplify regulations so that small business owners can sell their small businesses when they retire, rather than perhaps be forced to close them up.
H.R. 3448 sponsored by Mr. Duffy and Mr. Carney will make small companies more attractive to investors and, in turn, produce higher rates of capital formation and jobs.
Just as this committee recognizes that small businesses are the engine of job growth, we also recognize that community financial institutions that lend to them – both banks and credit unions – are essential to the success of small businesses.
So today we’ll start by considering two bills that provide much-needed regulatory relief to our community banks and credit unions. I appreciate the opportunity to work with the Ranking Member on this matter. I know that she shares my concerns and the concerns of many on this committee that we are losing far too many of our community financial institutions and the unique role they play in the economic growth of our nation.
H.R. 3329, sponsored by Mr. Luetkemeyer as well as Mr. Murphy, Mr. Cotton, Mr. Quigley, Ms. Kuster and other members revises the Federal Reserve’s Small Bank Holding Company Policy Statement to help small banks and thrifts raise additional capital.
H.R. 3468 sponsored by Mr. Royce and Mr. Perlmutter provides credit unions parity with FDIC-insured institutions when it comes to deposit insurance coverage on certain trust accounts.
These regulatory relief and JOBS Act 2.0 bills we will consider today are good faith, bipartisan efforts to create a healthier economy. They represent precisely the kind of bipartisan action Congress should be taking to help our economy create more jobs.
Once again, I thank the sponsors of these bills on both sides of the aisle. I look forward to our discussion today and I look forward to future bipartisan efforts to turn our economy round.