A new bill that would eliminate certain provisions of the Dodd-Frank Act in an effort to ease locally-owned banks’ ability to lend money to smaller-sized businesses has been introduced in the House.
Rep. Vicky Hartzler (R-Mo.) said her bill would help smaller business grow and create jobs, PulaskiCountyDaily.com reports.
“Small businesses and American manufacturers need access to credit,” Hartzler said, according to PulaskiCountyDaily.com. “Dodd-Frank contains provisions that stifle growth. It has harmed the economy and made it tougher for the free market to create jobs. We need to reverse course and get jobs going here again.”
Financial experts had discouraged Republicans from attempting to repeal last year’s Dodd-Frank Act in one major repeal bill. Instead, Republicans are taking swipes at it piece-by-piece. Legislation has also been offered in both the House and the Senate to repeal certain provisions on the derivatives market.
Hartzler’s bill, the Small Business Credit Availability Act, would exempt small banks, credit unions and farm credit banks from regulations meant to target larger banks. Executives from smaller banks have argued they do not have the resources to cover the new hefty compliance costs.
“I have met with bankers who have told me the real beneficiaries to this legislation are small-and-mid-level business owners seeking to grow their businesses and create jobs,” Hartzler said, PulaskiCountyDaily.com reports. “They have told me their hands are tied and that this legislation addresses fundamental problems of language in last year’s Dodd-Frank law. My bill alters Dodd-Frank to keep power at the local level. It will keep those small, locally-owned banks in business by giving them the freedom they need to more easily make loans to businesses serving their communities.”