Last week, President Trump held a listening session with community banking CEOs and the leaders of community banking trade groups to discuss financial regulation and opportunities for regulatory reform. Now, he and congressional leaders have an opportunity: reform the Dodd-Frank Act in a way that helps small business.
These issues are critically important to our economy. Small businesses are responsible for half of all jobs in the United States and 60 percent of all net new jobs since 1995. Access to capital is fundamental to starting and growing these businesses, and gaps persist in the small business loan market, particularly in small-dollar loans.
So if President Trump and leaders in Congress truly want to reform Dodd-Frank to help small businesses, what can they do? They can start with four ideas.
Simplify capital requirements for community banksCommunity banks, a primary source of loans for small businesses, are burdened by capital requirements designed for large institutions that pose a systemic risk. These requirements limit the ability of community banks to lend, and make it harder for small businesses to access capital. Simplifying these requirements is something Hillary ClintonHillary Rodham ClintonHow Washington can change Dodd-Frank to boost small businesses Pence dismisses Assange allegation of White House ‘takeover’
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