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.

american bankers associationBeltway ConfidentialCredit cardsUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

BART Ambassadors are being called on to assist riders in social situations that don’t require police force. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
Unarmed BART ambassadors program formalized with a focus on community service

Public safety and police reform are key elements in campaigns of Board members Dufty and Simon

On Oct. 13, people lined up to vote early for the presidential election in Southlake, Texas. <ins>(Shutterstock)</ins>
<ins></ins>
Five things to watch for in the run-up to Nov. 3

Down-ballot races, as much as the presidency, will determine the future course of this nation

WeChat (Shutterstock)
U.S. District Court denies Trump request to shutdown WeChat app

A federal judge in San Francisco denied a request by the U.S.… Continue reading

School board members Gabriela Lopez (left) and Alison Collins (right) say they have been the subject of frequent hateful, racist and sexist attacks during their time on the school board. (Kevin N. Hume/S.F Examiner)
Angered by Lowell decision, SFUSD grad targets school board members with violent imagery

Facebook page depicts two women of color on board with swastikas and x-marks on their faces

Supervisor Sandra Lee Fewer, a former school board member, said it was ‘ridiculous’ that the school district did not yet have a plan to reopen. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
Supervisors demand SFUSD set a timeline for reopening

Pressure grows on district to resume in-person learning as The City’s COVID-19 case count goes down

Most Read