Chairman Graves Statement On Bills To Increase Access To Capital, Help Small Businesses Grow
Nov 3, 2011 -
House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on today’s House vote on the “Access to Capital for Job Creators Act” (H.R. 2940) and the vote on the “Entrepreneur Access to Capital Act” (H.R. 2930):
“We have learned through our hearings that the inability to access sufficient credit and capital still remains one of the biggest problems for many small businesses. This causes a significant hardship for them because small businesses lack the resources of their larger counterparts and rely more heavily on access to capital to carry out their daily operations.
“In order to help get business owners the capital they need, it is imperative that Washington adopts policies that support functional capital markets, while lessening restrictions and barriers to finding investment. The Entrepreneur Access to Capital Act and the Access to Capital for Job Creators Act do just that, by promoting an innovative method of capital formation, in crowdfunding, and opening the pool of investors from which small companies can raise equity capital.
"Last month, the Committee heard from Rodger Davis, Managing Director of Northcreek Mezzanine, a small business investment company who said, ‘[b]y targeting the small business segment of the market, we are addressing a basic and fundamental need for capital that is not being served by traditional sources of capital.’ Investment in small business is critical and the fewer restrictions that we have on the ability of small businesses to raise funds in innovative ways, the more jobs we will create.
“Last week, the World Bank released its annual ‘Doing Business’ report which found that the U.S. fell to number 13 in ranking for 'ease of starting a business.' Unfortunately, government policies are making it harder for small businesses to start up and grow. This week’s legislation to improve access to capital takes a step in the right direction of supporting small business by opening up additional avenues for small firms to raise capital.”