Stop me if you’ve heard this before?  Small businesses continue to struggle with funding opportunities. 

Oh you have heard that before?  Well, here’s another article to remind you about it (with a few new stats).

According to the US News article “as of 2013 there may be more than 600,000 fewer small businesses than if we’d not had the 2007-2009 crisis.”  Yes that terrible recession crisis that saw the housing market collapse and Wall Street implode is still affecting small businesses today.  

So the question must be asked, if we as a nation ever truly get past those two years completely?

Probably not…. The longstanding fear will continue to be that “it could happen again” and with the mindsets of many New York power brokers, it honestly could.  Regulation isn’t always a terrible thing, especially when coming off a situation like the Financial Crisis, but at some point, incentives must be created for these institutions to help spur growth and expand small businesses.  Treating banks as the enemy will only hinder economic growth in the short and long term.

“According to a 2015 Federal Reserve Board and Conference of State Bank Supervisors survey of small banks, nearly 50 percent of respondents reported that compliance costs increased 10 to 30 percent in the past three years.”  These numbers are enough to make a conservative investor out of all of us.  What’s worse, a “2014 study found that the number of newly created banks established since the crisis is at its lowest level in 50 years”.

Regulation is necessary in today’s environment and beyond.  America cannot handle another Financial Crisis at this time and proper processes need to be in place to eliminate the possibility.  With that being said, these regulatory practices must be effective, otherwise they will become the precursor to slow economic growth and possibly another crisis.