The Senate passed by a wide bipartisan margin this week S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. Following the 2008 financial crisis, policymakers embraced standardization, a one-size-fits-all approach to bank regulation. This approach has undermined relationship lending (credit decisions informed by local knowledge and expert judgment). The Census Bureau reported that only 414,000 small businesses were founded in 2015, a 26% decline from the 558,000 small businesses that were founded in 2006.
Regulatory relief is desperately needed to reverse the decade-long decline in small business lending. Main Street businesses rely on community, midsize, and regional banks for credit and other financial products to get started, sustain operations, manage cash, make payroll, and create well-paying jobs. This critical legislation is the first financial regulatory reform bill to gain strong bipartisan support, and it will go a long way to ensure that regulations on community, midsize, and regional banks are properly tailored to their low-risk business model.
Please take action and let your senators know that you appreciate their support for this commonsense reform that will restore Main Street lending.