Washington DC – Today, the Subcommittee on Oversight, Investigations, and Regulation of the House Small Business Committee is holding a hearing entitled “.Getting past regulations: Another path to investing in small businesses. ”
Subcommittee Chairman Van Dine’s opening statement (prepared):
good morning. Welcome to today's hearing. This hearing will highlight how small businesses across the country are struggling to access capital as the current administration continues to impose unreasonable restrictions.
Today, access to private credit is more important than ever. I would like to thank the witnesses who have joined us today to have a robust dialogue on this topic. We look forward to hearing from you and discussing how we can help job creators access the investment sources they need to grow.
Small businesses across America continue to navigate economic challenges in a post-pandemic world, paralleling the effects of reckless government spending that led to decades of high inflation and crushing interest rates. Combined with the stifling regulations put in place by this administration, doing business is now more expensive and more difficult than ever.
Our job creators depend on access to capital to keep their doors open. Without stable access to capital, small businesses don't have the certainty they need to grow and, in some cases, survive.
In addition to limited access to investment options for small businesses, tighter bank lending standards and significantly slower loan growth are making it difficult for mom-and-pop shops to survive. I am.
Instead of financial institutions making decisions based on business models and risk assessments, the current administration is forcing financial institutions to make investment decisions based on population quotas. Entrepreneurs, job creators, and small business employees are much more than demographic boxes to check. Small businesses are vital to communities across our country and are the result of innovation and hard work.
I've heard from constituents who are community bankers that their hands are tied because their capital is sitting there unused. As this administration continues to impose new regulations and direct investment where they think is best, our small businesses are being left behind. rather than promoting meritocracy.
Over the next 10 years, compliance with President Biden's regulations will cost Americans more than $1.5 trillion. Since the day President Biden took office, he has tasked job creators with more than 287 million hours of additional paperwork. As regulations become more complex, so too will costs for small businesses that are already overburdened by the administration.
As we've heard many times, overregulation can close the doors of any small business. These regulations make it difficult or impossible for businesses to comply, compete, and survive, let alone make a profit.
Private credit from non-traditional investors has long been a lifeline for entrepreneurs across the country, but it is especially important now given the current administration's policies.
As the federal government attempts to regulate and eliminate small businesses, private investment is increasing to fill the void. More than 80% of his private equity investments support small businesses, and in my district he has more than 130,000 jobs supported by private equity. The bottom line is that private financing has grown because it is necessary, useful, and successful in supporting American businesses in everything from medicine and biosciences to energy production and consumer services. is. I'm grateful that small businesses have this option, and I'm pleased to be holding this hearing today to put the needs of job creators first and push back against the Biden administration's destructive regulatory environment. .
Now, I would like to hand it over to the ranking members.
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