Rep Cmte Financial Services
Hurt Bill Removing Costly Dodd-Frank Mandate Approved By Committee
Washington, Jun 22 -
The Financial Services Committee approved legislation by Rep. Robert Hurt removing a costly Dodd-Frank Act mandate to allow small businesses easier access to private capital. The Small Business Capital Access and Job Preservation Act (H.R. 1082) exempts private equity fund advisers from having to register with the Securities and Exchange Commission so long as the fund does not employ leverage that is greater than a ratio of 2 to 1. H.R. 1082 was approved by a voice vote.
The Financial Services Committee has received testimony regarding the role private equity firms play in preserving existing jobs and creating new ones by providing capital to struggling and growing companies.
"With far too many 5th District Virginians and Americans remaining out of work, our top priority continues to be supporting policies that will help spur job creation. This bipartisan bill will help restore confidence and certainty to the marketplace by reducing unnecessary government mandates so that our small businesses can access capital more easily and more jobs can be created and preserved,” said Rep. Hurt.
Given the costs of registration and compliance, subjecting private equity advisers to this regulation diverts capital, time, talent and effort from activities that result in job creation. By tailoring registration requirements to exempt advisers to private equity funds, the bill strikes a better balance between the benefits of adviser registration and its costs.
"Costly and unnecessary regulations out of Washington are a roadblock to our recovery. They are especially harmful to small businesses. Rep. Hurt is to be commended for taking the lead in breaking down this government barrier to new jobs,” said Financial Services Committee Chairman Spencer Bachus.