Graves Welcomes House Passage of Small Business Capital Access and Jobs Preservation Act
Small Business Committee Chairman Sam Graves (R-MO) today welcomed House passage of the Small Business Capital Access and Jobs Preservation Act (H.R. 1105), which reduces burdensome regulatory requirements on small and mid-sized private equity funds that often invest in small businesses.
The legislation exempts private equity funds from expensive new SEC registration requirements imposed by Title IV of the Dodd-Frank Act.
“The Dodd-Frank Act creates excessive red tape that inhibits growth, and the costly new requirements on smaller private equity funds is a clear example,” said Chairman Graves. “H.R. 1105 helps reduce that regulatory burden on private equity funds in a common sense way, so that private sector capital isn’t unnecessarily restricted and these funds can remain focused on investments that help grow the economy.”
Private equity-backed companies employ over 7.5 million people nationwide in over 17,700 U.S. firms and have invested over $3.6 trillion in businesses in ten years.
In a December 3 hearing, the Small Business Subcommittee on Investigations, Oversight and Regulation examined the effects of the overall regulatory burden on small financial institutions, namely banks and credit unions, including Dodd-Frank regulations. The hearing specifically analyzed the impact of the Consumer Financial Protection Bureau and Basel III capital standards, among other financial regulations, finding that choices for consumers and small businesses are being limited as the number of banks decreases and one-size-fits-all regulations limit flexibility to make loans.###