Tipton Delivers Keynote Address on Small Business Access to Capital
Washington D.C.—Today, Congressman Scott Tipton (CO-3) delivered the keynote address at the Electronic Transaction Association’s Policy Day on Capitol Hill. Tipton, a former small business owner, stressed the important role online lending markets play in expanding access to capital and the ongoing concern regulatory burdens pose to the growth of small businesses nationwide.
In discussing the current regulatory climate facing small businesses, Tipton highlighted the Dodd-Frank Act as one of the main drivers of onerous and duplicative regulations prohibiting growth for Main Street businesses. He discussed the unintended consequences of Dodd-Frank and noted that the law has burdened the financial sector with more than $24 billion in compliance costs.
“Every small business owner knows that competition in the marketplace is unavoidable,” Tipton said after his speech. “Every day they work to expand their businesses, hire more people and gain a greater share of the market. Often times the speed at which they can expand is vital to their success or failure. Online lending can be a useful tool for businesses looking to succeed and grow that may not have access to traditional financing methods. With regulatory requirements already tightening credit from community banks and credit unions, it is imperative that the online lending marketplace is allowed to grow responsibly without needless and onerous regulation that stifles that ability of small businesses to access capital. As regulators continue to gather information on this emerging area it is imperative to recognize that online small business lenders are already regulated both at the federal and state level. Adding regulation for the sake of regulation is impractical and will stifle economic growth.”