FreedomWorks, along other like-minded organizations, signed a coalition letter to President-elect Donald Trump and Vice President-elect Mike Pence opposing repeal of deregulatory measures that advance the message of less government and more freedom.
In March 2016, the National Credit Union Administration (NCUA) introduced the business lending rule, which lifted the stringent regulations Bill Clinton introduced during his presidency in 1998. Clinton’s regulations capped the amount of business loans credit unions may make to members to 12.25 percent of the credit union’s assets.
Big bank lobbyists are currently pressuring Congress to reinstate the regulation because they want to hinder their credit union competitors. Unfortunately, America’s banks and credit unions are both faced with burdensome regulations from Dodd-Frank as well. This is no reason to back down to the big banks who are self-interested.
This red tape excessively limits small business owners and entrepreneurs from promoting job growth. According to the U.S. Small Business Administration, small businesses accounted for 63 percent of the net new jobs created between 1993 and mid-2013. Not supporting this deregulatory rule, in turn, is suppressing job growth.
According to Pepperdine University economist David M. Smith, “credit unions grant a greater percentage of business loans to small business owners” than banks do. It is essential that the Trump Administration stick to their word by deregulating the marketplace to promote a pro-growth agenda.