SBE Council Supports H.R. 1105: Provides Regulatory Relief to Improve Capital Formation/Access

By SBE Council at 2 December, 2013, 4:44 pm

UPDATE: The House passed H.R. 1105, the Small Business Capital Access and Job Preservation Act by a vote of 254-159 on December 4, 2013.

The Honorable Robert Hurt

U.S. House of Representatives

United States Congress

Washington, D.C.  20515

Dear Congressman Hurt:

On behalf of the Small Business & Entrepreneurship Council (SBE Council), I am writing to support H.R. 1105, the Small Business Capital Access and Job Preservation Act. A late September 2013 survey by SBE Council found a disturbingly large percentage of entrepreneurs (62%) who said the outlook for their firms had not improved (or had worsened) since the financial crisis more than five years ago.  For growth-oriented firms responding to the survey, access to capital remains a worrisome issue. That is why SBE Council continues to support initiatives such as H.R. 1105, which will help improve U.S. capital formation and access for small businesses.

The overly broad Dodd-Frank law imposed SEC registration and compliance rules on private equity when, quite simply, none were needed. There was and is no evidence of pervasive problems with private equity, or that it poses systemic risk to the marketplace. Irrelevant and time-consuming procedures as required by Dodd-Frank, only hamstring private equity’s role in efficiently serving the many small businesses that benefit from the capital and expertise it provides.

Lifting the redundant and burdensome Dodd-Frank regulations on private equity – as H.R. 1105 proposes to do — will improve capital markets efficiency, and therefore make a meaningful difference for entrepreneurs. The (SEC) can also better meet its core responsibility of protecting markets and retail investors.

Please let SBE Council know how we can help advance H.R. 1105 into law.

Sincerely,

Karen Kerrigan, President & CEO