PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

KERRIGAN IN AMERICAN BANKER: CFPB Overreach is Actively Harming Small Businesses

By at 13 June, 2024, 11:57 am

In a new OP-ED, SBE Council president & CEO Karen Kerrigan writes that policy predictability is needed for small businesses in order to navigate current headwinds and thrive in the long term. Unfortunately, various federal government agencies are pumping out new rules and regulations that not only fuel uncertainty, but if fully enacted raise small business costs and harm competitiveness. The Consumer Financial Protection Bureau (CFPB) is specified in Kerrigan’s piece where hyper-regulatory activity is draining small business optimism and putting competitiveness and access to credit and capital at risk. She writes:

“The Consumer Financial Protection Bureau (CFPB) is one such federal entity that is piling on with intrusive regulation and ignoring the effects of these actions on small businesses. One such example, falling under the category of labeling appropriate business activity as abusive, is the mandate that caps credit card late fees at just under $10.  The harmful consequences of this CFPB mandate will make its way to countless small businesses. The disparate impact not only affects small firms in the financial sector, but also small business consumers that need capital to operate and grow.”

She adds:

“Rather than fueling uncertainty, the CFPB should be devising strategies that facilitate clearer policies that bring more certainty to lending markets…Helping to facilitate clear lending guidelines that encourage and enable finance options are goals the CFPB needs to embrace. When financial options are protected, consumers and small businesses are protected. And isn’t that what the Consumer Financial Protection Bureau claims it is all about?”

Read the full OP-ED here.

 

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