U.S. Chamber Statement for the record on Small Business Hearing

The U.S. Chamber of Commerce (“the Chamber”) is dedicated to promoting, protecting, and defending America’s free enterprise system. More than 96% of Chamber member companies have fewer than 100 employees, and many of the nation's largest companies are also active members. We are therefore cognizant not only of the challenges facing smaller businesses but also those facing the broader business community.

The Chamber’s Center for Capital Markets Competitiveness (“CCMC”) seeks to advance America’s global leadership in capital formation by supporting diverse capital markets that are the most fair, transparent, efficient, and innovative globally. CCMC advocates for American businesses to ensure that legislation and regulation strengthen our capital markets so that businesses—from the local flower shop to a multinational manufacturer—can mitigate risks, manage liquidity, access credit, and raise capital. Among other things, CCMC advocates for appropriate and balanced banking regulations that maintain financial stability while also allowing businesses of all sizes to obtain capital and credit to expand and succeed. Banks are vital intermediaries for all businesses seeking capital and credit.

CCMC regularly surveys corporate treasurers and other financial decision makers at U.S. businesses to understand their economic outlook and their views on regulation. The survey provides an inside view of how financial regulation impacts small to large businesses and their ability to access capital and expand. Working with Teneo Research, CCMC surveyed 300 corporate finance executives including Treasurers, Deputy Treasurers, Controllers, Chief Financial Officers, and Chief Executive Officers (small businesses only). The survey data was collected between June 28, 2023, through July 27, 2023. While CCMC intends to make the results public soon, some initial findings are included in this statement, namely that the Basel III Endgame regulations, which would require covered banks to hold more capital, may come with considerable costs to their business customers on Main Street and could have a material impact on the U.S. economy.