Credit card regulation: Big government vs. small business

When Boeing wants some cash flow, it doesn’t use a credit card. But Mom and Pop do. John Berlau, in a letter to the editor, informs the Washington Post of how new credit-card regulations hurt small business:

Overlooked was the role personal credit cards play in business startups. According to a survey by the Kauffman Foundation, 48 percent of new businesses used personal debt of the owner, most commonly with personal credit cards, for financing.

Among the entrepreneurs who used personal credit cards to get their start was Sergey Brin, who as a college student in the 1990s tapped into this source of credit to build a search engine that today we all know as Google. This method of financing, however, probably would not have been so available had the CARD Act restrictions been in effect back then.

How many future innovative new businesses are we sacrificing with this law and other misguided credit card restrictions?

A related note: The American Bankers Association applauded this bill.

Just Posted

Mayor sets deadline to empty seismically unsafe jail, but city still lacks a plan to make it happen

On the 30th anniversary of the devastating Loma Prieta earthquake, Mayor London… Continue reading

E-scooter company Skip announces layoffs after losing SF permit

San Francisco-based e-scooter company Skip this week announced pending layoffs for roughly… Continue reading

SF files motion to dismiss NRA’s lawsuit over ‘domestic terrorist’ label

San Francisco filed a motion Thursday to dismiss the lawsuit filed against… Continue reading

Thirty years after Loma Prieta, is San Francisco ready for the next ‘big one?’

Bay Area residents breathed a sigh of relief this week after a… Continue reading

With Loftus set to take office, poll shows voters disapprove of last-minute DA appointment

Mayor London Breed made an unpopular decision when she named candidate Suzy… Continue reading

Most Read