Despite the fact that many parts of the JOBS Act — originally signed into law more than one year ago, with a mandate to encourage small business capital formation — have not yet been implemented by the SEC, the government continues to research ways to foster capital formation for small and mid-sized businesses.

The House Financial Services Committee's Subcommittee on Capital Markets and Government Sponsored Enterprises held a hearing on Wednesday, June 12 aimed at identifying obstacles small businesses face in obtaining funding in the capital markets.

Among the suggestions made by five testifying witnesses were: creating a new equity market for public companies under $2 billion in market value, implementing a quote and order price increment, or "tick-size," pilot program for publicly traded small companies; modifying regulations for lower middle market private equity funds and business development companies (BDCs); and reforming regulations governing broker-dealers that provide services to small and mid-sized businesses. A webcast of the hearing and full transcripts of witness testimony can be found here.