Rep. Gosar Votes to Cut Business-Strangling Red Tape
‘Set Our Small Businesses Free’
WASHINGTON, D.C. – Today, U.S. Congressman Paul Gosar, D.D.S. (AZ-04) voted in favor of the Small Business Capital Access and Job Preservation Act (H.R.1105), legislation that would eliminate excessive regulations that damage our economy, increase businesses’ costs and restrict access to private sector capital that small businesses need in order to grow and create jobs. It would do so by exempting private equity firms that meet certain requirements from burdensome Securities and Exchange Commission (SEC) filing criteria, allowing them to invest that money in businesses rather than use it to comply with these excessive regulations. The House of Representatives passed H.R.1105 by a bipartisan vote of 254-159.
After the vote, Rep. Gosar said, “Arizonans can never afford to have the federal government strangle businesses with red tape, but that is especially true now, when so many families are out of work. This bill will eliminate excessive regulations, making it easier for small businesses to gain access to capital so they can grow and create new jobs. We must set our small businesses free so they can do what they do best: put Americans back to work.”
The Dodd-Frank Act, passed in 2010, added more than 400 regulations to the already-massive federal regulatory regime. One of those new regulations requires investment advisers who advise private equity firms and hedge funds to register with the SEC. Compliance costs for these firms, for just this one regulation, are estimated to be $500,000 per firm.
H.R.1105 would exempt from the SEC filing requirement those investment advisers who work for firms that have not borrowed and that do not have an outstanding principal amount more than twice their funded capital commitments, thus freeing millions of dollars for private investment.