Rep Cmte Financial Services
Subcommittee Continues Focus on Solutions to Help Small Businesses Grow
Washington, May 13 -
The Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises, chaired by Rep. Scott Garrett (R-NJ), held its second in a series of hearings on Wednesday to review legislative proposals designed to reduce regulatory burdens so small companies can gain access to job-creating capital.
“As multiple witnesses have testified to this Committee over the years, our current equity market structure in many ways disadvantages small issuers, who often times find their stocks trading in illiquid markets with little to no research coverage. This has the ultimate effect of raising the cost of capital for these companies, impacting their ability to grow and hire new workers,” said Chairman Garrett.
Key Takeaways From the Hearing:
Topline Quotes from Witnesses:
“Taken together these draft bills and the other legislative proposals from the April 29, 2015 hearing would provide a basis to allow entrepreneurs to create new businesses, give investors more information and new ways to invest, and regulators the means to have better oversight of the capital markets. This is a public policy trifecta needed to give businesses the ability to grow and stay competitive while creating new jobs." – Thomas Quaadman, Center for Capital Markets at the U.S. Chamber of Commerce.
“Removing artificial regulatory impediments to small firm secondary markets makes it more likely that investment capital will flow to entrepreneurial enterprises. Inadequate access to capital is one of the central barriers to entrepreneurial success and a better functioning secondary market for small firms will improve access to capital for entrepreneurs.” – David Burton, Senior Fellow, The Heritage Foundation