Robert Hurt Introduces H.R. 1082, The "Small Business Capital Access And Job Preservation Act"

Press Release

Congressman Robert Hurt (R-VA) today released the following statement after introducing the bi-partisan "Small Business Capital Access And Job Preservation Act," which would 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. Hurt introduced this bill as a member of the Financial Services Committee, and the Capital Markets Subcommittee will hold a legislative hearing on this proposal at 2 pm today. Congressman Jim Cooper (D-TN) is the lead co-sponsor of H.R. 1082.

"At a time when unemployment remains near 20 percent in some areas of the 5th District, this bill is one step towards removing barriers to job growth for Central and Southside Virginians and all Americans.

"By reducing burdensome and costly government mandates that were placed on those who are making long term investments in our economy, small businesses will have the ability to access capital more easily so that more jobs can be created and more jobs can be preserved.

"In order to get people back to work and put the 5th District and our nation on a sustainable economic track, it is critical that we continue to remove these kinds of onerous regulations that tie up capital, add uncertainty to the market place, and stall hiring and economic growth."

Background Information

The Small Business Capital Access and Job Preservation Act removes a government mandate to allow small businesses easier access to private capital so that jobs can be preserved and created in the 5th District and throughout the country.The Financial Services Committee has received testimony regarding the role private equity firms play in preserving existing jobs and creating new ones by providing capital to struggling and growing companies. The Dodd-Frank law requires advisers to private investment funds to register with the SEC, including advisers to private equity funds. Unlike systemically significant institutions, private equity firms do not pose a systemic risk to the financial system. This costly and excessive regulation could negatively impact economic growth and long term investments at a time when our economy is struggling to recover.

5th District And Virginia Facts

In the 5th District, private equity backed companies employ over 1,500 people. Statewide, the over 200 Virginia-based companies that have received private equity investment employ more than 58,800 people.

Source