Just last month, President Obama reminded Americas that “America’s small businesses . . . create two out of three new jobs“. Unfortunately, the Dodd-Frank banking bill he’s pushing will hurt small businesses and the community banks they rely on.
Here in the Golden State, Roger Hart, a former community banker who has helped small businesses in the past, has castigated the state’s junior Senator for supporting the bill as it will make it increasingly difficult for small businesses to gain access to capital:
Reasonable access to capital is the primary issue for small business. Currently, small businesses are unable to obtain financing as their community banks continue to struggle. As seen by the increase in unemployment since the plan’s passage, it’s clear government programs have been ineffective in supporting the small businesses that actually create jobs. And last month, Senator Boxer voted for a financial reform bill that would have subjected community banks to many of the same restrictions imposed on large Wall Street banks-despite the fact that community banks were neither to blame for our financial crisis, nor can they afford the cost of compliance with these massive new regulations.
I share the same concerns with the banking bill as does Mr. Hart. It seems to add a new layer of regulation to all segments of the banking industry, even those not responsible for the market meltdown of 2008. Fortunately, with Sen. Scott Brown, R-Mass., who supported the Senate version of the bill, opposing the reconciled version which includes “$19 billion in bank fees added [in] . . . at the last minute“, the bill’s passage seems less likely.
With yet another Boxer initiative stalled, this begs the question: with unemployment at record levels in the Golden State, what policies has Barbara Boxer proposed, pushed or passed to make it easier for entrepreneurs to create jobs in her jurisdiction?