In The News

Yesterday, the  “Editor’s Note” in the Detroit News took an important “big picture” look at the harmful effects of Dodd-Frank on small towns across America. Congressman Huizenga and Republican members of the House Financial Services Committee have worked tirelessly to examine Dodd-Frank and detail how truly damaging this ill-conceived law is for consumers, small businesses, and community lenders. For a more in-depth look at Dodd-Frank and its negative impact on Main Street click here.


Dodd-Frank slows small business growth
By Nolan Finley

A vigorous small business base is essential to a healthy economy. So it’s no wonder this economic recovery has been so tepid.

Loans to small businesses are off sharply, down 38 percent since before the passage of the Dodd-Frank bill, which added layers of regulations on the financial industry.

Passed in response to the near collapse of the banking industry during the Great Recession, Dodd-Frank has encouraged consolidation of lending institutions and toughened requirements for loans. It has fallen heaviest on smaller, community banks that tend to service entrepreneurs and small businesses.

That has a particularly negative impact on smaller towns and rural areas, which lack access to the mega-banks.

It’s another example of how in Washington, the cure is often more harmful than the ailment.

This note originally appeared in the Detroit News on December 9th.