Most economists and policymakers have traced the origins of our current economic downturn to the offering of high risk mortgages to millions of Americans. Congress responded to the public outcry over needed reform with a bill that would regulate the processes that broke down and got us into this bind — the Dodd-Frank Act.
Regrettably, Main Street America — home buyers, consumers and small businesses — is starting to feel some of the unintended consequences of this important legislation.
In speaking with Hispanic business owners whom the U.S. Hispanic Chamber of Commerce represents, I have learned that countless entrepreneurs believe that access to credit is their single largest challenge. While this tightening of the system lessens the risk of default, it also creates difficult burdens for individuals who are not high risk, but simply have low credit scores or a thin credit history. This process of eliminating options and/or access for creditworthy businesses and consumers is now hindering our country’s efforts to get our economy back on track.