Subcommittee Examines Proposals to Grow the Economy and Create Jobs
Apr 9, 2014 -
Two years after its passage, the bipartisan Jumpstart Our Business Startups Act (JOBS Act) is working, but more can be done to open capital markets to small businesses and emerging growth companies, witnesses told the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises.
That is why today’s Subcommittee hearing focused on seven legislative proposals to help eliminate unnecessary and unduly burdensome barriers that make it hard for small companies to raise the capital they need to start up, grow and hire workers.
“America’s startups and small businesses continue to encounter difficulties accessing U.S. capital markets to finance their operations. Moreover, the costs to these companies of going—and staying – public remain unacceptably high. In an effort to continue to help small businesses raise much needed capital, we have this legislative package before the Subcommittee today,” said Subcommittee Chairman Scott Garrett (R-NJ).
“Emerging, pre-revenue biotech companies depend on investment capital to support the search for next-generation medicines, and many turn to the public markets to find investors and fund research. We have seen the clear appetite for capital formation on the public market in the wake of the JOBS Act,” said Brian Hahn, Chief Financial Officer of GlycoMimetcis, Inc. “The rise in biotech IPOs in the last two years has unambiguously shown that public fundraising is fundamental in the search for groundbreaking medical advancements,” Hahn added.
The Obama Administration has imposed a record-breaking volume of red tape on small businesses. Total regulatory costs on U.S. companies have been estimated at more than $1.7 trillion each year. Today, less than eight percent of U.S. companies are less than six years old, down from 12-13 percent in the early 1980s.