A House GOP measure aimed at boosting the ability of small businesses to raise capital is an opportunity for members of both parties to work together on job creation, the No. 3 House Republican said Wednesday morning.
“If you have a great idea, you can’t go out if you don’t already know the individuals, and you’re trying to get capital,” House Majority Whip Kevin McCarthy (R-Calif.) said Wednesday morning in an appearance on “Fox and Friends.” “So, [in] my bill today inside the Financial Services Committee, we’re going to get rid of that (Securities and Exchange Commission) regulation. We’re going to allow individuals with a good idea to find those who are accredited investors to invest in their business. And when you find somebody to invest like that, you get another avenue to capital, and small business is where all the job growth is created.”
McCarthy appeared on the show to tout his “Access to Capital for Job Creators Act,” a measure that the California Republican introduced in September and that is being marked up by the House Financial Services Committee later Wednesday.
The bill is one of several small-business measures that the House is poised to take up in the next several weeks.
In a roundtable with reporters Tuesday afternoon, McCarthy — who along with Majority Leader Eric Cantor (Va.) and Budget Committee Chairman Paul Ryan (Wis.) is considered one of the rising “Young Guns” in House Republican leadership — contended that his measure and other similar bills represent a chance for members of both parties as well as the White House to come together on job creation.
“The president didn’t write these ideas, but these ideas came up in committee and passed in a bipartisan manner,” McCarthy said Tuesday. “I would hope the president wouldn’t say because it’s not his he has to not accept them.”
The “Access to Capital for Job Creators Act” is not a sweeping job-creation package such as those previously introduced by President Obama and congressional Republicans, McCarthy acknowledged Tuesday. But he argued that by eliminating obstacles to capital formation for small businesses, the measure would represent a small but important step forward in addressing the country’s jobs crisis.
“The challenge that we face when you measure where we are today, we’re at our lowest point in the last 16 years for start-ups ... and the entrance to market are some of the reasons why,” McCarthy said. He added that from 2001 to 2007, small businesses employing 500 employees or fewer added a total of seven million new jobs, 60 percent of which came from companies five years old or younger.
No companion version of the legislation exists in the Senate, and McCarthy said he did not yet know whether the upper chamber would be likely to take up the measure should it pass the House.
The California Republican also noted that House leadership has been conducting “listening sessions” with members regarding the layout of the calendar for the rest of the year; among the agenda items likely to be taken up are another measure to keep the government funded past Nov. 18 and a to-be-determined version of a balanced budget amendment to the Constitution.