Expanding Access to Capital Act of 2023

Floor Speech

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Ms. HOULAHAN. Madam Chair, I rise today to urge my colleagues to support my very straightforward amendment to protect small businesses and community banks in the wake of financial crisis, and I thank Ranking Member Waters for the opportunity to lead on this issue.

I want to take this Chamber back 1 year ago to the collapse of Silicon Valley Bank that sent our financial system into disarray. In 48 hours' time, one of the largest U.S. banks failed, impacting customers, investors, businesses, and stockholders across our Nation.

Silicon Valley Bank's failure subsequently led to the collapse of Signature and Silvergate Banks in rapid succession as well, making this crisis one of the most significant banking failures in United States history.

After moments like these, it is important that Congress and key agencies like the U.S. Securities and Exchange Commission fully understand the scope and impacts to our economy. Transparency and accountability are essential to instill confidence in our capital markets and to prevent another crisis from tanking our economy in the same way.

In conducting the analysis, we must not only examine and understand the impact of the broader macroeconomy, but we must also make a concerted effort to understand the effects on small businesses and community banks that drive our Main Streets.

According to Federal Reserve data, deposits at smaller community banks dropped by $120 billion in the week following the collapse. This is especially troubling when we consider that smaller banks hold approximately 36 percent of our business loans, according to the FDIC.

In other words, community banks took a hit in the immediate aftermath of the failure, which is especially concerning considering the high number of Main Street businessowners that utilize them.

Our Federal Government has a responsibility to gather data on exactly how this crisis impacted our mom-and-pop shops and the community banks that they depend on for crucial lines of capital. We must ensure that we learn from and take action to prevent the missteps and events of the past as well.

That is why I am offering this very straightforward and very commonsense amendment to ensure that the SEC's Advocate for Small Business Capital Formation study the effects of the collapse of Silicon Valley Bank on community banks and small business lending alike.

The Advocate, whose job it is to advance the interests of small businesses and their investors, would then be required, under this amendment, to provide Congress and the SEC with a report of its findings and recommendations.

One month after the Silicon Valley Bank's collapse, I had a chance to meet with a group of local Pennsylvania bank leaders, including Customers Bank, Presence Bank, and First Resource Bank, located in my district. Each one of these banks was deeply concerned about their ability to serve the small businesses that drive the economy, create and sustain jobs, and fund the American Dream.

I specifically recall the CEO of Customers Bank, located in the Sixth Congressional District, sharing the account of the fear that small businesses had when this happened. They were concerned that they would not be able to meet payroll and other obligations.

This conversation, and outreach from many other concerned businesses in my community, is why I am putting forward this amendment. At the end of the day, these are jobs and livelihoods that are at stake.

I want to also be clear and address a falsehood. This amendment does not attempt to imply that the SEC regulates banks. This amendment clearly speaks to the responsibilities of the Advocate for Small Business Capital Formation to advance the interests of small businesses and their investors. It will allow Congress to take the requisite action to protect small businesses and community banks ahead of future financial crises and help them be more secure and more resilient.

Once again, I urge my colleagues, both Democrat and Republican, to support my straightforward and very commonsense amendment to protect our Main Streets and to ensure accountability and transparency in our financial system.

Madam Chair, I yield the balance of my time to the gentlewoman from California (Ms. Waters), and I thank her for her continued leadership.

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Ms. HOULAHAN. Madam Chair, I yield back the balance of my time.

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Ms. HOULAHAN. Madam Chair, I demand a recorded vote.

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Ms. HOULAHAN. Madam Chair, I thank Representative Tlaib for yielding to me.

I rise today in opposition to H.R. 2799, the Expanding Access to Capital Act of 2023, because it would remove critical safeguards against fraud and abuse in our financial markets at the expense of everyday Americans.

This bill represents a set of policies that would deregulate Wall Street and further enrich the wealthiest of our communities, all while reducing investor confidence and protections for retirees and for mom- and-pop investors.

We already see the practices of private equity funds making single family homes unaffordable and an increasing number of rural hospitals inaccessible. The last thing we need to do is to make the situation worse.

It is for this reason, at the appropriate time, that I will offer a motion to recommit this bill back to committee. If the House rules permitted, I would have offered the motion with an important amendment to this bill. Instead of enabling bad actors, my amendment would protect the privacy of women utilizing in vitro fertilization by prohibiting the Securities and Exchange Commission from requiring a business that provides IVF treatments from disclosing any personal identity information on the individual who is receiving the treatment, the medical or support personnel who are providing that treatment, or the clients of such businesses.

In the Dobbs decision, we saw the Supreme Court tear away our constitutional right to privacy. All Americans, regardless of where they live, should be able to access the assisted reproductive technologies that they need to start or grow their families, including IVF, without the fear that their personal information will be shared. Our medical providers deserve to be able to do their jobs and to help patients make their best decisions for their circumstances without fear of retribution.

Madam Chair, I include the text of my amendment in the Record. I hope that my colleagues will join me in voting for the motion to recommit.

Ms. Houlahan moves to recommit the bill H.R. 2799 to the Committee on Financial Services with instructions to report the same back to the House forthwith with the following amendment:

After section 1, insert the following: SEC. 2. PROHIBITION ON RESTRICTING IVF TREATMENTS.

(a) In General.--The Securities and Exchange Commission may not--

(1) require an issuer that provides in vitro fertilization treatments to women, regardless of the location of such treatment, to disclose any personal identifying information of--

(A) the women who receive such treatment;

(B) medical or support personnel providing services to the treatment center where the treatments are performed; or

(C) clients of such issuer; or

(2) take any enforcement action solely on the basis of the provision of such treatments.

(b) Listing Standards.--The Commission may not approve any listing standards of a national securities exchange that requires a public company that provides in vitro fertilization treatments to women, regardless of the location of such treatment, to disclose any personal identifying information of--

(1) the women who receive such treatment;

(2) medical or support personnel providing services to the treatment center where the treatments are performed; or

(3) clients of such issuer.

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Ms. HOULAHAN. Mr. Speaker, I have a motion to recommit at the desk.

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Ms. HOULAHAN. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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