Patrick McHenryChairman

Washington, September 21, 2011 - Financial Services Committee Chairman Spencer Bachus today issued the following statement about the Capital Markets and Government Sponsored Enterprises Subcommittee’s hearing on small business capital formation and job creation:

"Today’s hearing continues the Committee’s ongoing efforts to promote policies that restore growth to our economy, support capital formation, and create jobs.

"The Securities and Exchange Commission has long ignored one of its core missions, which is to facilitate capital formation.  Despite numerous recommendations submitted to the Commission by its own Forum on Small Company Capital Formation, the SEC has been slow to act on any of these pro-job, pro-market, and pro-growth policies.

"That’s why on November 12 of last year, House Majority Whip Kevin McCarthy and I wrote to SEC Chairman Schapiro advocating action on a number of the Forum’s recommendations.  In fact, Congressman McCarthy and I recommended two of the three capital formation initiatives that the Obama Administration has recently indicated it now supports.  Specifically, we recommended increasing the offering threshold for companies exempted from SEC registration and alleviating the burdens that the Sarbanes-Oxley Act imposes on small companies.  In June, the Committee approved the 'Small Company Capital Formation Act' sponsored by our colleague from Arizona, Mr. Schweikert, to increase the offering threshold, which will make it easier for small businesses to access capital.

"Today’s hearing will examine five additional bills that will enable small businesses to raise new capital.  Two of the bills address Administration suggestions on 'crowdfunding' and Sarbanes-Oxley reforms.

"If we are serious about creating jobs, Congress must break down government barriers to capital formation.  New and existing small companies should not be hindered from accessing the capital markets because of cumbersome and outdated regulations.  Now is the time for action to help the small businesses that create more than two-thirds of the new jobs in our country.

"All of the bills under consideration today deserve broad bipartisan support, and Chairman Garrett and I plan to move these bills expeditiously through the Committee and to the House for its consideration at the earliest possible date."