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Opening Statements

Van Duyne: “Navigating Regulations: Alternative Pathways to Investing in Small Businesses”

WASHINGTON, D.C. – Today, the House Committee on Small Business Subcommittee on Oversight, Investigations, and Regulations is holding a hearing titled “Navigating Regulations: Alternative Pathways to Investing in Small Businesses.”

Subcommittee Chairman Van Duyne’s opening statement as prepared for delivery:

Good morning, and welcome to today’s hearing, which will highlight how small businesses across the nation are struggling to access capital because this Administration continues to impose undue restrictions.

Access to private credit is more critical today than it ever has been. I want to thank our witnesses for joining us today to have a robust conversation on this topic. I am eager to hear from you and discuss how we can empower our job creators to access the investment sources they need to grow.

Small businesses across America are continuing to navigate economic challenges in a post-pandemic world alongside the repercussions of reckless government spending that has given us decades-high inflation and crushing interest rates. Coupled with stifling regulations implemented by this Administration, it is now more expensive and strenuous to do business than ever.

Our job creators rely on access to capital to keep their doors open. Without stable access to capital, our small businesses don’t have the certainty they need to grow – or, in some cases, survive.

Along with limited access to small business investment options, bank lending standards have grown stricter and loan growth has slowed significantly, making it harder for mom-and-pop shops to stay afloat.

Instead of lenders being able to make decisions based on business models and risk assessments, this Administration is forcing them to base investment decisions on demographic quotas. Entrepreneurs, job creators, and employees at small businesses are much more than demographic boxes to check. Small businesses are critical to communities across our country and are the result of innovation and hard work.

As I’ve heard from a constituent who is a community banker, capital is sitting there unused and her hands are tied – our small businesses are getting left behind because this Administration continues to impose new regulations and direct investment where they think is best, rather than allowing meritocracy to prevail.

Over the next decade, compliance with President Biden’s regulations will cost Americans more than $1.5 trillion. Since the day President Biden took office, he has burdened our job creators with more than 287 million hours in additional paperwork. As regulatory complexity grows, so do costs to small businesses that are already overburdened by this Administration.

As we’ve heard time and time again, overregulation can shutter the doors of any small business. These regulations make it difficult, or even impossible, for businesses to comply, compete, and survive, let alone make a profit.

Private credit, which comes from nontraditional investors, has long been a lifeline for entrepreneurs across the country but is especially important now given this Administration’s agenda.

As the federal government attempts to regulate our small businesses out of existence, private investment is stepping up to fill the void. More than 80% of investments made by private equity support small businesses and, in my district, more than 130,000 jobs are supported by private equity. The bottom line is private financing has grown because it is needed, useful, and is successful at helping American businesses in every sector from healthcare and bio-sciences, to energy production and consumer services. I am grateful our small businesses have this option, and I am glad to hold this hearing today to put the needs of our job creators first and push back on the Biden Administration’s destructive regulatory environment.

With that, I would now like to yield to our Ranking Member.