Congressman Robert Hurt today delivered the following statement during the House Committee on Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee hearing:
Robert Hurt Opening Statement Text
"Thank you Mr. Chairman. Thank you for holding today's hearing on reducing barriers to capital formation. One of the most important functions of this Committee is to promote initiatives to increase access to capital for our small businesses and startups.
"Last Congress, this Subcommittee led the way in the enactment of the JOBS Act. Among other things, the JOBS Act allowed emerging companies to tap capital in the public markets without enduring some of the most burdensome regulations which inhibit their ability to grow.
"Despite the SEC's inability to fully implement the JOBS Act in a timely fashion, we are already seeing the positive impact of the law as 83 percent of IPOs after the JOBS Act's passage were emerging growth companies.
"We, however, can still do more to remove costly and unnecessary regulatory impediments that are restricting companies from accessing capital in the public and private markets.
"I have heard from innovative biotech companies in my District, Virginia's 5th District, that the overall regulatory burden, which disproportionally impacts smaller public companies, is the primary motivator in their decision to stay private. We must look at solutions to eliminate and streamline regulations to create an environment that is more efficient and conducive for long-term economic growth.
"I appreciate this Committee's continued focus on ensuring that our small businesses and startups have the ability to access the necessary capital in order to innovate, expand, and create the jobs that our local communities need -- that my District, Virginia's 5th District, need.
"I look forward to the testimony of our distinguished witnesses and thank them for their appearance today.
"Thank you, Mr. Chairman. I yield back the balance of my time."