Rep. Vicky Hartzler (R-Mo.), the sponsor of the bill, also known as the Small Business Credit Availability Act, explained the importance of amending Dodd-Frank to minimize the reform legislation’s unintended negative impact on small-town America, Agri-Pulse reports.
“The current law stifles the [h]eartland,” Hartzler said, according to Agri-Pulse. “Small businesses in rural America should be able to access credit in local communities without the need to turn to national banks that are not familiar with the needs and concerns of this part of the country.”
Supporters of the legislation contend that while the increased regulation of large financial institutions is necessary due to the risk posed to the U.S. financial system, the same rules are not needed for smaller institutions.
“Although Dodd-Frank was supposed to reduce the power of big banks, it has actually had the exact opposite effect,” Hartzler said, The Hill reports. “My bill helps to reverse this trend and keep lending decisions closer to home.”
Hartzler further explained that the bill would increase the ability of small businesses to attain credit within their communities.
“This revision of Dodd-Frank is essential to farmers, manufacturers and small and rural businesses wanting to expand and create new jobs,” Hartzler said, according to The Hill. “Many of these businesses are often overlooked by large national banks and might not have access to competitive loans.”