Wagner: Access to Capital is Not a Partisan Issue, It's About Ensuring That Businesses, Investors, and Workers Have the Tools They Need to Succeed
Washington,
February 26, 2025 -
Today, the House Financial Services Committee is holding a Capital Markets Subcommittee hearing, led by Subcommittee Chair Ann Wagner (MO-02), to examine the critical role of capital formation in driving economic growth.
Read Subcommittee Chair Wagner’s opening remarks as prepared for delivery:
"Good morning and thank you all for joining us today. We’re going to be discussing ways to strengthen both public and private markets by expanding investment opportunities and reducing regulatory barriers to capital formation.
"Securing funding is essential for small businesses, yet many entrepreneurs face roadblocks. While the bipartisan JOBS Act of 2012 was a landmark step in making capital more accessible, significant regulatory barriers remain. If we fail to act, we risk stifling innovation and economic expansion.
"One of the most pressing challenges is the restrictive definition of accredited investors.
"Current regulations primarily allow only high-net-worth individuals to invest in private markets, shutting out many financially knowledgeable Americans who have the expertise—but not the wealth—to participate in these opportunities.
"Expanding investment opportunities beyond the limited few who qualify under this narrow definition will unlock new sources of capital, benefiting both businesses and investors.
"Small businesses also face growing obstacles when seeking funding. Traditional bank loan approval rates have dropped significantly, leaving many entrepreneurs with limited options.
"No business should be forced to rely solely on financial institutions when alternative sources of capital are available. Expanding investor access to private markets and streamlining regulatory requirements for raising private capital will create more opportunities for businesses to secure funding and for investors to participate in economic growth.
"These challenges are not just theoretical—this is the reality faced by American entrepreneurs. My constituent, Andrew Barnell, and his sister Erica, are perfect examples of why access to capital matters.
"Their entrepreneurial journey demonstrates the power of American innovation, but they, like too many founders, especially those in communities outside traditional financial hubs, have faced barriers that limit their ability to expand and create jobs.
"Across the country, countless small businesses and entrepreneurs face similar roadblocks, preventing great ideas from becoming successful job-creating enterprises.
"As Acting SEC Chair Uyeda recently said, 'We should be encouraging, not restricting, the ability of companies to raise capital.'
"Regulations should protect investors, but they should not suffocate market access or drive companies overseas. We must ensure both public and private markets remain viable funding options, giving businesses the flexibility to grow in the way that best suits them.
"The reforms we discuss today build upon the foundation set by the JOBS Act. By reducing regulatory barriers, increasing access to capital, and safely expanding investor access, we can ensure that innovation and economic growth continue to flourish.
"To ensure we get this right, after today’s hearing, this committee will be requesting feedback from stakeholders on legislative proposals aimed at strengthening our capital markets. We want to hear directly from investors, entrepreneurs, small businesses, and market participants about how we can improve access to capital without sacrificing investor protections.
"Access to capital is not a partisan issue, it’s about ensuring that businesses, investors, and workers have the tools they need to succeed. If we work together, we can make meaningful progress toward a stronger and more dynamic economy.
"Thank you, and I look forward to today’s discussion."
