Colorado and our country are still recovering from the devastating effects on our lives, including our economy. And there is no clearer place than the color communities that bear the brunt of the economic and health consequences. When our state and federal governments enact legislation and allocate funds for rehabilitation, it is important that we find relief where it is most needed and refrain from doing anything that could adversely affect these communities.

The dollar is king and now more than ever we need cash flow into our economy, especially for our low-income residents. Unfortunately, federal law can make the problem worse. Billions of dollars worth of companies are trying to extend the “Durban Improvement” to apply to all credit card transactions.

It was said that the Dublin Reform, which used to charge debit cards for debit cards, would help consumers. Instead, he put $ 90 billion in the pockets of large corporations. In these difficult times, similar corporations are not currently fighting for capital. In fact, many of these corporations made huge profits last year.

After the debit card exchange cap, banks had to make up for lost revenue by increasing the minimum balance for bank accounts, reducing the availability of free checks, and adding new account maintenance fees. A.D. A 2014 study from George Mason University found that Durbin’s improvements caused an disproportionate increase in the number of one million Americans in low- and low-income communities.

The Durbine upgrade will cost all businesses regardless of the size, which is the same rate for debit card transactions instead of the percentage that is a fair and market-based approach. Expanding this improvement on credit card transactions will undoubtedly have far-reaching consequences for all small businesses, especially black-owned businesses. Prolonging the application of credit improvements on credit cards will once again hurt Colorado consumers, especially in African American communities.

African-American and minority businesses are already suffering from a wealth gap. According to the American Center for Development. By 2020, 65.2% of black families were unlikely to receive $ 400 in emergency funding, leaving little money left for emergency businesses. In addition, black-owned businesses often start with less capital than white businesses, that capital is from investments or bank loans. In addition, only 1% of black business owners receive bank loans in the first year, compared to 7% of white business owners.

Lack of access to credit also reduces the financial capacity of small black-owned businesses. According to the 2018 Small Business Loans Survey, the largest banks in the Brookings Institution have 60% of the loans requested by white small business owners, only 50% and 29% by black small business owners. Worst of all, according to a report by the U.S. House Small Business Committee, black business ownership decreased by 40% between February 2020 and April 2020.

Small businesses are the backbone of the Colorado economy, and consumer purchasing power is vital to revitalizing those businesses — especially small businesses. Extending Durbine’s upgrade to loans The total asset transfer of $ 40 billion to $ 50 billion will only go directly from consumers to big box stores.

The National Black Chamber of Commerce and the Congress of the Black Caucasus have listed the first setbacks of the Durban Reform – we must all come together and urge US senators to fight this corporate greed and protect our most vulnerable people.

Denver Democrat James Coleman represents the District 33 in the Colorado General Assembly.

Denver Democrat James Coleman represents the District 33 in the Colorado General Assembly.