Legislation to Help Small Businesses Access Financing Signed into Law
Late last month, President Trump signed into law legislation designed to help the nation’s small businesses grow by better tailoring regulations for community and regional banks. The Columbia Montour Chamber joined with the U.S. Chamber of Commerce and the PA Chamber of Business & Industry in calling for reforms to the rules of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which were put in place following the financial crisis in 2008.
The financial crisis led community, mid-size and regional banks to become regulated under a “one-size-fits-all” model that doesn’t take into account the institution’s actual risk profile. As a result, cost of credit for small businesses has increased, capital has slowed; along with relationship banking that is based upon local knowledge and judgment is hindered. The Chamber sent a letter to Senators Pat Toomey and Bob Casey in December, urging reforms that reduce burdensome regulations while maintaining reasonable controls.
Senate Bill 2155 passed in the Senate in March, and in the House on May 22, with the President signing the bill into law two days later. Senator Toomey and Congressman Barletta voted in favor of the legislation.