WASHINGTON, D.C. – Congressman Robert Hurt (R-Virginia) today released the following statement after introducing the bipartisan Small Business Capital Access And Job Preservation Act (H.R. 1105). This measure will reduce government mandates and unnecessary regulations implemented by the new Dodd-Frank law which inhibit private equity firms from investing private capital into small businesses. By reducing over-regulation, this legislation will promote greater access to capital for small businesses in the 5th District and across the country. A member of the Financial Services Committee, Hurt introduced this bill to encourage the creation of new jobs and preserve existing jobs. Congressmen Jim Himes (D-CT), Jim Cooper (D-TN), and Scott Garrett (R-NJ) are the lead co-sponsors of the bill.
"At a time when economic uncertainty and federal over-regulation are hindering job creation, it is critical that we look for bipartisan solutions to create jobs in our local communities and get our economy back on track.
"As I travel through Virginia's 5th District, the negative effects of federal over-regulation and government mandates contained in the Dodd-Frank law can be clearly seen along our Main Streets and on our family farms. Fewer businesses are starting and more are failing – and the lack of access to private capital is negatively impacting our economy by limiting job growth and stifling investment.
"In order for our economy to grow and for our small business owners and family farmers to be able to create the jobs that we need, we must remove unnecessary regulations that tie up private capital and create economic uncertainty, and put in place policies that encourage investment, innovation, and the entrepreneurial spirit that makes America great. By reducing costly government mandates placed on those who are making critical investments in our economy, our small business owners will have the ability to gain access to capital more easily so that more jobs can be created and more jobs can be preserved."
Jim Ramaker, Virginia Candle CEO, added: "Our lifeblood right now is private investment. Without private investment, we would not have been able to take our business out of a garage in Lynchburg and into millions of homes all across the world. The more unnecessary regulations there are that inhibit private capital investments, the more difficult small business success and job creation is. I appreciate Robert Hurt's bipartisan efforts on the Small Business Capital Access and Job Preservation Act and his commitment to getting private capital onto the streets."
Diane Arnold, Director of the Longwood Small Business Development Center, added: "Dodd-Frank unfortunately required regulators to implement rules unnecessarily impeding the private side of lending. That should be cause for alarm for all of us who work with small businesses who often rely on private lending partners in order to grow and create jobs. Congressman Hurt's bill is a reasonable and measured approach to reining in Dodd-Frank on this issue of private lending that will stop an unnecessary impediment to capital access and job creation and ultimately prevent those unintended consequences that have occurred with other portions of this legislation."
This legislation will reduce government mandates and unnecessary regulations on private equity firms implemented by the new Dodd-Frank law and thereby promote increased access to capital for small businesses in the 5th District and across the country. Hurt introduced this bill to support the creation of new jobs and preserve existing jobs. The Small Business Capital Access And Job Preservation Act is supported by the U.S. Chamber of Commerce.
· In the 5th District, companies backed by private equity firms employ more than 2,500 people.
· Statewide, 352 Virginia-based companies that have received private equity investment employ more than 205,300 people.