A NEW PRESIDENTIAL administration and a new outlook on business and tax regulations could be the key to getting small businesses, both Latino-run and otherwise, off the ground, according to Sen. Jeff Flake, a Republican from Arizona.
Flake told Latino Leaders that he hopes the business regulations will change from what they have been because he believes it would help.
"I would hope that they would benefit from the emphasis on addressing some of the regulatory barriers to economic growth," Flake said. "I am hoping the Trump administration will continue to where I think they have started to go in getting rid of these barriers.
Flake said changes to the tax code as well as a simplification of the code would be beneficial.
The senator also told Latino Leaders that there were a few things that could be done to help the promotion of Latino businesses, such as helping banks lend more easily to Latinos.
"Access to capital is a tough thing and that is making it difficult for small businesses to grow," Flake said.
He added that the Dodd-Frank Wall Street reform bill has worked to push a lot of smaller lenders, which are more apt to lend to small businesses, into larger lenders that are not.
At the same time, businesses do not want to get too big because of Affordable Care Act laws, which require a company to provide health care if a business is larger than 50 employees. Flake said in the future he hoped the regulations would ease.
"Some of the new regulations that were a response to the financial crisis in terms of ratios of capital reserve requirements, I could see those staying," Flake said. "A lot of those that are intended to look at money laundering and with the border banking."
But Flake said a lot of the regulations could be rolled back and that most of them are "overkill."
"I have been talking to bankers saying they could accomplish the same thing with 10 percent of the regulations," he said. "The overall effort that we're trying to go through here is to create a conducive tax and regulatory market where the banks will actually go out and look for business, rather than being just concerned with complying with regulation and only doing those loans. (That way it won't) cause them to be tied up with paperwork."
Flake said he thinks the...