The House Small Business Subcommittee on Investigations, Oversight and Regulations, under the chairmanship of Rep. David Schweikert (R-AZ), today held a hearing to review several innovative financing options, determine how those methods are meeting entrepreneurs’ needs, and discuss what Washington can do to foster more access to credit.
“Today we heard about new and innovative methods deployed for small businesses and entrepreneurs to access capital and credit via technology platforms,” said Chairman Schweikert (R-AZ). “Financing tools like crowdfunding and peer-to-peer lending have organically stepped up to meet the needs that traditional investors and lenders are failing to meet. Though the ‘JOBS’ Act was signed into law more than one year ago, it remains in limbo at the SEC. Platforms like those represented by our witness panel today continue to prove the need, and the success, of these types of micro financing opportunities. As a federal government, the only thing we need to do is get out of the way.”
Materials for the hearing are posted on the House Small Business Committee’s website HERE.
Danae Ringelmann, Co-Founder of Indiegogo in San Francisco, CA said, “Often regulation is put in place to protect all parties. While too little regulation could lead to another 2008, too much regulation could also be damaging as it could stifle innovation. Regulation setting is a tough challenge; there’s no question about that. What I hope regulators keep in mind, however, is that business pressures and business uncertainties are often better drivers of innovation and protection, than regulations. For example, Indiegogo developed proprietary screening systems and Trust & Safety algorithms to ward off fraud not because a law told us to, but rather because we wanted to stay in business.”
Alejandro Cremades, Founder and CEO of RockThePost in New York, NY said, “…I believe that we are far behind and every day that passes without the JOBS Act being implemented is another day that startups need to fight for survival.”
Michelle Sullivan, Senior Director of Corporate Communications and External Affairs at the Boston Beer Company in Boston, MA said, “Microloans are a critical component to Brewing the American Dream as there is a serious lack of funding available today to small and very small businesses. It is equally as important to educate inexperienced business owners in the areas of sales, graphic design, purchasing, marketing, hiring, distribution and other facets of business that can make the difference between success and failure.”