I just learned another way the Dodd-Frank Act favors big banks…

… and helps shut down access to capital for the small entrepreneur.

Need to raise capital by getting a mortgage on your home? Not from a small bank. Most small banks have simply exited from the mortgage loan business because they cannot afford the additional people to keep up with the new regulations.

Actually, many small banks have been forced to close because the regulations are too costly to meet and now make qualifying for loans impossible for many potential borrowers. One of our local banker says that the regulations cost his bank an additional $200,000 per year and that 70% of the solid borrowers that previously would have qualified for a loan no longer qualify.

Without access to capital, many new businesses cannot open, old ones do not expand, employees do not get hired, and the economy slows down.

Here is yet another deal killer–buried within the Dodd-Frank Act is a provision that allows an owner/occupant in default to sue the bank for loaning him/her the money. Good for big banks, good for attorneys, and apparently good for politicians who extol its virtue, but…

… the Dodd-Frank Act is a disaster for the little guy and for the economy.

***Gary A. Howie MSc, PhD*** is a business owner/rancher and a Life & Liberty News contributor