According to the U.S. Small Business Administration (SBA), small businesses play a vital role in the country’s economy. They produce nearly half of the private nonfarm GDP in the U.S. and employ more than half of America’s workforce.
The passage of Dodd-Frank Wall Street Reform and Consumer Protection Act increased capital reserve requirements for banks as a percentage of total bank assets. This led banks to show strong preference in lending to those seeking sums of money larger than the typical small business owner, who according to Harvard Business Review typically seeks less than $500,000.
Although, the “Economic Growth, Regulatory Relief, and Consumer Protection Act,” signed into law recently was a start in relieving some of the regulations crushing small and midsize banks themselves, further reforms are necessary.
As a tax attorney, Greg McCauley has helped hundreds of businesses in the Philadelphia metro area each year. He understands the direct impacts Dodd Frank regulations have had on Chester and Berks Counties’ small businesses, especially on their abilities to borrow money to expand their operations or perform critical updates to their infrastructure.
Besides reforming the student loan debt crisis, working toward the repeal of Dodd Frank regulations that impede small business lending was a strong inspiration in Greg’s announcement to run for Congress. The SBA statistics clearly illustrate that small businesses are the backbone of the U.S. economy. We must empower them to succeed by granting them access to the capital they need to not just survive but also expand and thrive.