Wagner Delivers Opening Statement at Capital Markets Subcommittee Hearing on Removing Barriers to Capital Access for Small Businesses
Washington,
February 8, 2023 -
Today, the House Financial Services Subcommittee on Capital Markets, led by Chairman Ann Wagner (MO-02), is holding a hearing entitled, “Empowering Entrepreneurs: Removing Barriers to Capital Access for Small Businesses.”
Watch Chairman Wagner’s opening remarks here.
Read Chairman Wagner’s opening remarks as prepared for delivery:
“Eleven years ago, the Jumpstart Our Business Startups Act or JOBS Act of 2012 was enacted into law by a divided Congress with the intention of increasing access to capital for small businesses and entrepreneurs in the United States.
“The purpose of the JOBS Act was to provide greater opportunities for small business owners and entrepreneurs to grow their companies and create jobs in their communities.
“Despite the successes of the JOBS Act, there are still significant regulatory barriers that impede the growth of small businesses and hinder the competitiveness and job growth of the United States.
“Small businesses, which make up 99% of all enterprises and employ almost half of the US workforce, are disproportionately affected by these barriers.
“The lack of access to capital makes it challenging for small business owners to grow and expand their companies, which can limit job creation and economic growth.
“For this reason, I am thrilled to convene this hearing today to discuss policy reforms that will reduce these obstacles and improve access to capital for small and private businesses and entrepreneurs across the country, not just in the financial centers on our nation’s coasts, but in every state.
“The decline in small business loan approval rates, from 81% before the COVID-19 pandemic to 68% in 2021, underscores the importance of maintaining and enhancing our private markets as a viable option for small business capital needs.
“If we limit access to capital in our private markets, as SEC Chair Gensler intends to do, where will small businesses turn for funding, considering the decrease in loan approval rates? The need for access to capital is critical, and small businesses must have options available to them to secure the funding they need to grow and create jobs.
“Republicans in this Committee believe that entrepreneurs and founders should raise money with as little friction as possible. As a result, Congress and regulators must adopt common sense, forward-thinking policies that reduce barriers and increase access to capital raising opportunities for American entrepreneurs.
“The proposed legislation we are discussing today will lead to increased competitiveness and more opportunities for companies on main street to thrive. Healthy public and private markets can coexist, and we should work together to pursue policies that make both markets attractive places to raise capital and spur economic growth.
“As the Chair of this Subcommittee, I am eager to tackle these regulatory barriers that prevent small businesses and entrepreneurs from accessing capital. Today’s proposals will enable all entrepreneurs, including those who have been overlooked and underserved, to create jobs and grow their businesses, regardless of their background or location.
“Our goal is to ensure that small business owners and entrepreneurs have the resources they need to succeed and create jobs in their communities.
“In conclusion, the JOBS Act of 2012 was a step in the right direction, but there is still much work to be done to improve access to capital for small businesses and entrepreneurs.
“The regulatory barriers that exist must be addressed, and policy reforms must be implemented to reduce these obstacles and enhance access to capital. This will enable small businesses to grow and create jobs, contributing to the overall economic growth and competitiveness of the United States.
“I am committed to working with my colleagues in this Subcommittee to achieve these goals and make the American dream a reality for all entrepreneurs.”
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