Find small-business ties to financial reform

Some owners of small businesses, including orthodontists and car dealers, are concerned about provisions of the financial reform bill being debated on Capitol Hill. Photo by Flickr.com user NIOSH.

As debate over financial reform continues on Capitol Hill – with a vote expected as early as this week – you may be searching for ways to localize the sweeping regulatory changes, known as the Restoring Financial Stability Act of 2010,  to the nation’s banking, lending and investing systems.

Illustrating the varied consequences of the bill at the hometown level will make it easier for your readers to understand the legislation, which is dauntingly complex.  If you’re just starting out, here’s a link to a previous blog post of mine,  which has links to resources for journalists who need to learn about the bill, including a Pew report.  This other past post suggests taking a look at state-level regulatory activities to give some context and color to the federal regulation.

But there are some interesting small business angles, too.

Orthodontists, for example, have been worried about the reform, according to this Salon article. That’s because the teeth-straighteners provide long-term financing arrangements for patients getting care that can span several years.  They’re worried about being lumped in with big unsecured credit lenders under any reform law.  Take time to talk with orthodontists and practice managers in your area about the law.  Also Google terms like “dental practice consultant” for related specialists who may be able to lend insight into the financial aspects.

More on the orthodontic topic at this Securities Law Prof blog, which is a good all-around resource for anyone following financial reform.

The American Association of Orthodontists and others are championing the Small Business Safe Harbor amendment to the reform bill, which was introduced earlier this month and passed by voice vote.  It’s worth watching to see if the amendment makes it; aside from orthodontists, many local businesses that offer time payments – from jewelers to furniture stores.  See this press release for more details about how such firms would be exempt from oversight by the consumer protection bureau that would be created by the financial reform law.  More info at this page by the Senate Committee on Small Business and Entrepreneurship.

Also trying to cut their own deal for exemption are the nation’s 18,000 auto dealers, as this latest bulletin on the National Automobile Dealers Association site illustrates. The trade group is calling for an increase to “grassroots pressure” as the controversial vote drawers near.  As we saw from the fallout of hundreds of dealership closings over the last year, auto retailers already are feeling beleaguered and anything the dampens auto sales has far-reaching ripple effect in our economy; ask around at local banks, dealers and ancillary businesses about how tightened lending would affect your Main Street.  Think creatively – places like fitness gyms and pool installers and other big-ticket sellers may or may not have a stake in financial reform – I don’t know – but it’s worth a few phone calls to find out.

And remember, not all companies and entrepreneurs oppose reform.  The Main Street Alliance, a small business organization, released a survey earlier this year indicating broad support for the measures.

If you aren’t already, it’s a good idea to check in with local banks and credit unions.  Ask them not only for insights into the ripples of reform on their businesses, but where it might hit the community elsewhere – for good or ill.