Arizona Field Hearing Examines Small Business Environment for Access To Capital
The House Small Business Subcommittee on Investigations, Oversight and Regulations, under the chairmanship of Rep. David Schweikert (R-AZ), today held a field hearing in Scottsdale, Arizona to examine the environment for raising capital, the regulatory impediments to investors providing funds to entrepreneurs, and the implementation of the Jumpstart Our Business Startups Act of 2012 (JOBS Act).
“Today's field hearing in Scottsdale provided us with the opportunity to examine the current environment for small businesses looking to gain access to capital,” said Chairman Schweikert. “While the local Scottsdale area has not fully rebounded from the housing market crash, I am encouraged by what small businesses and entrepreneurs are doing to grow the economy and create jobs. My hope is that lawmakers become more aware of how decisions made in Washington affect small business access to capital and the potential for growth in Arizona and across the country.”
On April 11, 2013, Chairman Schweikert led the 113th Congress’ first hearing on the JOBS Act implementation following its 2012 passage. The JOBS Act package included two of Schweikert’s bills, the Small Company Capital Formation Act (HR 1070) and the Private Company Flexibility and Growth Act (HR 2167). The Small Company Capital Formation Act enables small businesses to raise additional capital through private stock offerings by increasing the limitation from $5 million to $50 million. The Private Company Flexibility and Growth Act removes an impediment to capital formation for small companies by raising the shareholder threshold for mandatory registration with the SEC from 500 to 2,000 shareholders. The shareholder threshold was originally adopted in 1964, and has not been modernized since then.
Materials for the hearing are posted on the House Small Business Committee’s website HERE.
Nima Jacob Nojoumi, Co-Founder & CEO of itsWorth, LLC in Tempe, AZ said, “I am here to say that as a state we are leaving money and opportunity on the table. We can and we must do better. We must coordinate better and connect the dots more strategically. The standalone organizations must join forces to create an ecosystem of opportunity, an ecosystem of human and financial capital, an ecosystem of local job creation. We can and must become known as a great state where great ideas come to life.”
Thomas H. Curzon, Senior Partner of Osborn Maledon in Phoenix, AZ said, “We have noted the recent Kauffman Foundation report showing that in 1990, Phoenix did not show up in the top 20 metropolitan areas for high tech start-up density and by 2010 we have found our way to 13th largest on that list. We at Invest Southwest believe that through the continued efforts of the Conference, ACA, the Arizona Technology Council, the numerous incubators and accelerators we now have, as well as the contributions of ASU, UofA and Thunderbird, and others, Arizona will continue to make important gains as a place where businesses will continue to be created and thrive at an increasing pace.”