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South Carolina is home to an estimated 530,000 small businesses, accounting for more than 99% of all businesses in our state. They collectively employ over 863,000 workers and drive economic activity in every corner of The Palmetto State.
As a small business owner myself, I understand firsthand just how demanding it can be. Rising costs are a constant reality, making it critical that we are able to access the financial resources necessary for day-to-day operations. It’s one reason why I ran to serve as a member of the South Carolina House of Representatives, to be a voice for small business owners and fight for the policies and resources they need to succeed.
The new proposal issued by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) is a major opportunity to make life more affordable for small businesses. By reforming an old capital requirements framework, properly modifying risk measures, and making it easier for banks to lend, we can expand access to the affordable credit our communities need.
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This would represent a major change for communities here in South Carolina. The failed policies of the Biden administration caused prices on everyday items to go up rapidly over the last few years, leaving businesses and families struggling to keep up.
Thankfully, President Trump and his team have returned to the helm with a clear mandate to correct course to support our state’s families and businesses. So far, the administration has kept their promise of getting rid of overly burdensome regulations to help spur growth in the economy. While this has helped make good progress towards lowering costs, more work lies ahead.
This new proposal will help further President Trump’s goal of improving the cost of living. It seeks to expand access to credit while reducing the cost of credit. By modifying how risk is calculated and assessed, as well as eliminating overly stringent regulatory barriers, we can free up capital that can be invested in our communities. Rather than keeping it locked away to fulfill an outdated requirement, that capital can now be put to work where it is needed most.
In practice, this new regulatory framework will create more economic opportunities for business and families across South Carolina.
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Small businesses with roots in our state stand to gain enormously. With more affordable credit finally within reach, local entrepreneurs will have the financial backing they need to hire more workers, invest in new equipment, and pursue expansion opportunities that tight lending conditions have long kept out of grasp.
With studies ranking South Carolina in the bottom half of states when it comes to access to capital, these reforms will provide the financial foundation needed to close that gap, expand lending opportunities, and position our state for improved economic growth.
At the same time, families from the Upstate to the Lowcountry will also be able to move forward with major financial decisions. They will finally have the affordable credit options needed to finance a reliable car, cover an unexpected expense, or even just breathe a little easier knowing that the credit they need to build a stable financial future is within reach.
The new rule will also help put South Carolina communities on a more level playing field when compared to our global counterparts. U.S. banks have faced high capital requirements for years, driving up borrowing costs for here at home while peer nations have offered far more affordable credit. By recalibrating these requirements, the proposal will lower the cost of credit and give South Carolina’s families and businesses the same opportunities to grow and compete that their counterparts abroad have long enjoyed.
South Carolina’s communities are counting on our financial regulators to get this right. I urge the Federal Reserve, FDIC, and OCC to finalize this proposal to help lower costs and make life more affordable.
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