PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Kerrigan in The Hill: Reforms Will Help Main Street, Not Wall Street

By at 16 February, 2018, 12:31 pm

In a February 16 Op-ed in The Hill, SBE Council president & CEO Karen Kerrigan writes that access to growth capital remains a challenge for small businesses. She writes that reforms are needed in many areas to improve capital formation and access, and making smart changes to Dodd-Frank regulations for regional banks would free up needed capital so that businesses can take advantage of opportunities in the growing economy.

As she notes in the piece:

“These burdensome regulations are imposed on regional banks that pose little risk to the overall financial ecosystem, but are categorized and regulated in a similar manner as complex Wall Street banks. However, these financial entities operate very differently. Regional banks focus on customers by offering deposits, commercial and consumer lending, and other traditional banking services within their communities. Meanwhile, Wall Street banks have fewer loans and more assets from trading and federal funds.

“Treating them in the same manner makes no sense and has exacerbated some of the growth challenges that have plagued both small businesses and the economy. It bears repeating that small businesses serve as a major source of employment, local economic growth and innovative dynamism. Therefore, fostering capital access and flow must be a priority for Congress as meeting the capital needs of small firms is central to their growth and survival.”

Read the full Op-ed here.

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