A bill passed by the United States House of Representatives may help Upper Cumberland entrepreneurs start new businesses.
Congressman John Rose of Tennessee’s Sixth District co-sponsored the legislation.
“What we want to be sure is the government’s programs are, on one hand, serving those businesses and not neglecting them,” Rose said, “and on the other hand, when regulations are being put into place by federal agencies that they’re giving thought on how those regulations might deter the formation of capital that is so important for starting new businesses.”
According to Rose, House Resolution 2409 encourages the Safeties and Exchange Commission to assist rural companies at the same level as those in metropolitan and heavily-populated areas.
Rose said many rural entrepreneurs struggle to start their businesses due to policies implemented as a result of the 2008 economic recession.
“Some of the regulation that was put in place in the aftermath of the 2008 financial crisis has had the unintended consequence of discouraging small business formation around the country,” Rose said. “So we have to take a hard look at some of that regulatory burden that was put not only on small businesses but, maybe more importantly, on small financial institutions.”
Rose said the bill will allow for more economic development and new small businesses in rural locations as opposed to large metro areas.
“Unfortunately, if we look at new business formation in recent years, it has been heavily concentrated in just a few zip codes across the country in places you would expect like Silicon Valley, Washington D.C. and New York City areas,” Rose said. “Unfortunately what we’ve seen is the decline in new business formation elsewhere around the country.”
Rose said although the bill doesn’t quite equalize support given to both small and large businesses, it does help bridge the gap and alleviate some of the burdens faced by rural entrepreneurs.
“This is just one small step, frankly, to try to reverse that course and clear the field,” Rose said, “so that entrepreneurs right here in the Upper Cumberland and across the Sixth District will have the same equal footing for starting new businesses.”
House Resolution 2409 garnered bipartisan support, receiving 413 votes and passing the House earlier this month. The bill will next head to the Senate’s Committee on Banking, Housing, and Urban Affairs before moving forward.
