Washington, D.C. – U.S. Representative Ed Royce (R-Calif.) questioned expert witnesses on the barriers start-up businesses face when trying to access capital during a Capital Markets and Government Sponsored Enterprises Subcommittee hearing entitled “The JOBS Act at Four: Examining Its Impact and Proposals to Further Enhance Capital Formation.”
“In California, as you know, we’ve got a world-class network of start-ups from Silicon Valley to Orange County. The issue of access to capital for start-up businesses is critical to our state’s economy but critical also to ensuring our country remains the best place for entrepreneurs to bring products to market. Mr. Keating, you note in your testimony that the Micro Offerings Safe Harbor Act, which I’m an original cosponsor of, ‘appropriately scales federal rules and regulatory compliance for small businesses’ pursuing capital. Mr. Keating, how will this legislation help these start-ups that are looking for the investment to hire, grow, and enter the market?” asked Rep. Royce.
“It all comes down to the cost. When we talk about scaling federal rules, look at the data… that shows that regulatory costs certainly fall much more heavily on small businesses. Take the next step and consider the regulatory costs on start-ups, and it …read more
Source:: U.S. Rep. Ed Royce