FIRST ON FOX: A Goldman Sachs small business initiative is calling on 2024 political candidates to oppose efforts to restrict small business owners' access to capital.
FIRST ON FOX: Goldman Sachs issued a memo Thursday to congressional campaigns , warning that overregulation is blocking small businesses from accessing capital, an issue that could be a key issue during the 2024 election .
According to a survey conducted by Goldman Sachs and referenced in the memo Thursday, 78% of small business owners are concerned about their ability to access capital, and just 29% say they can currently afford to take out a loan, given current interest rates. And the issue, if it doesn't ease soon, could result in 21% of small businesses closing, 67% halting expansion plans and 85% altering their growth forecast.
While the effects of Basel III Endgame would likely be felt broadly across the country’s economy, the new rules would be especially devastating to U.S. small businesses," the memo states. "Small businesses already have a tougher time finding access to affordable capital and accessing lines of credit. This rule would exacerbate this. Even the Federal Reserve, which is proposing this new rule, has admitted that this proposal would further increase the cost of capital.
If these standards are adopted, they will have a devastating impact on our efforts to increase Black homeownership and disadvantage all first-time, and, in particular, first-generation homebuyers who do not have the benefit of multi-generational wealth or higher-than-average incomes," the National Housing Conference, Mortgage Bankers Associaton, NAACP, National Association of Realtors and National Urban League wrote in a letter to the Federal Reserve.
In my view, the regulation in this case is a quelching effect on access to capital," said Rep. Steven Horsford, D-Nev. "Capital is king. Capital is what people need — small businesses need to hire people, to buy products, to buy supplies, to grow their businesses. As a small business owner myself, I have felt the struggle of not being able to land a contract but then not fully service it because I didn’t have access to capital.
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