The House Committee on Small Business held a hearing to review the current state of small business access to equity capital and debt financing. The hearing focused on the Department of Treasury's current and future efforts to assist the private sector in providing the needed funds for small businesses to expand and grow. Congressmen Steve Chabot (R-OH) questioned Secretary Geithner on current policies that are hurting small businesses access to capital at a hearing on Wednesday.
Congressman Steve Chabot asked Secretary Geithner the following questions:
* "We are only now beginning to comprehend the extent of the compliance costs that will result from the passage of last year's pro-bureaucracy Dodd-Frank bill. As with any new regulation, the smallest firms will have the most difficult time complying... While many of the larger financial institutions may be able to weather the increased burden of complying with the Act's devastating existing and proposed regulations, small and community banks are already scrambling for their survival. How can this Administration claim to promote access to capital for small business when it is smothering the very community banks that are the lifeblood for our entrepreneurs?"
* "Last year, the Administration's major initiative in its so-called "jobs bill' towards increasing lending to small businesses was, as usual, to push more government spending -- in this case, to create a $30 billion "mini-TARP,' the "Small Business Lending Fund,' out of remaining TARP funds to encourage lending from smaller banks to small businesses.
"Now, your Treasury is warning us that we are on the brink of fiscal catastrophe unless we raise the debt ceiling. In fact, you said in May that a "default would not only increase borrowing costs for the federal government, but also for families, businesses and local governments.' If we are indeed as close to a disaster that would severely jeopardize lending, would you be willing to return the remainder of the $30 billion in mini-TARP so it can go towards paying down our debt and stabilizing access to credit? "