The House Financial Services Subcommittee on Capital Market and Government Sponsored Enterprises reviewed legislative proposals on Wednesday that would reduce limitations on capital formation, and allow companies to grow and create jobs more easily.
The bipartisan Jumpstart Our Business Startups Act was passed in 2012. The legislation eased the process for smaller companies to access capital markets, the HFSC said there is still more that can be done.
“Data continue to flow in on the early impact of the JOBS Act and the results are very encouraging,” Subcommittee Chairman Rep. Scott Garrett (R-N.J.) said. “Thanks in large part to the law’s self-executing ‘IPO on-ramp’ provisions, this is shaping up to be the best year for IPOs since 2007, with more than 150 through the first three quarters and counting.”
The hearing reviewed seven legislative initiatives to eliminate unnecessary and burdensome barriers to capital formation, following a series of hearings that requested suggestions for removing regulatory and statutory limitations.
“On top of the JOBS Act, more can and should be done to help small businesses raise much-needed capital to grow and create more jobs during this period of record-breaking government red tape, tepid economic growth, and persistently-high unemployment,” Garrett said.