House Approves Relief for Small Businesses

I was fortunate to get to meet recently with members of the Norman Chamber of Commerce during their annual trip to Washington. The Capitol's commonsense quotient automatically jumped a few points with so many Oklahomans on the premises, but that's not the only benefit of their visit. It's always educational to hear from people who know what it's like to start and run businesses, to make payroll each month, and to navigate the many hazards of a shaky economy.

Keeping a business afloat is challenging enough these days without government interference. Yet all too often, government regulations do more to hurt businesses than to help. Many small businesses are forced to expend time and resources they don't have in an effort to comply with pointless regulations dreamed up by government bureaucrats -- not to mention the direct costs imposed by excessive taxes and burdensome policies like Obamacare.

House Republicans recently took action yet again to relieve businesses from stifling government regulations. The Jumpstart Our Business Startups (JOBS) Act would increase access to capital, spur the growth of startups and small businesses, and make it easier for more small-scale businesses to go public and create more jobs.

According to the Small Business Administration, more than 60 percent of new American jobs are generated by small businesses. Yet these vital companies are the most vulnerable to excessive costs and regulations imposed by the government. Current regulations prevent small, privately held companies from using advertisements to seek accredited investors across the country. Additional restrictions prohibit entrepreneurs from raising equity capital from large pools of small investors who may not have SEC accreditation. The JOBS Act removes both of these bans, making it easier for small companies and start-ups to get the capital investment they need to grow.

Other components of the legislation make it easier for businesses to go public and remove impediments to capital formation by raising the threshold for mandatory SEC registration. An average of 92 percent of a company’s job growth occurs after an Initial Public Offering, and eliminating obstacles to IPOs is a simple, obvious way to promote job creation.

Many of the provisions of the JOBS Act had already been approved individually along with dozens of other job creation bills advanced by House Republicans but refused consideration by Senate Democrats. As individual bills, these policies passed by overwhelming, bipartisan margins in the House.

The JOBS Act is the right solution to decrease unemployment because it recognizes that job growth is driven by the private sector, not by the federal government. The Senate should pass this legislation right away.
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