For 25 years, the Florida State Hispanic Chamber of Commerce has worked to expand opportunity for Hispanic entrepreneurs and the small businesses that form the backbone of Florida’s economy. Today, more than 600,000 Hispanic-owned businesses across our state generate over $90 billion annually to Florida’s economy, fueling job creation, innovation and local growth. As we mark this milestone anniversary, one issue stands out as critical to the continued success of our business community: access to credit.
Small businesses run on credit. From covering payroll during seasonal slowdowns to purchasing inventory, repairing equipment, or managing cash-flow gaps, access to flexible financing allows entrepreneurs to grow and adapt in an ever-changing marketplace. For many small business owners, especially startups and minority-owned firms without deep reserves, credit cards are often the most accessible and immediate form of capital.
That is why proposals to impose government-mandated caps on credit-card interest rates raise serious concerns. While such ideas are often well-intentioned and labeled as consumer protection, they risk producing consequences that would directly harm the very people they aim to help. Policymakers across the political spectrum, from Bernie Sanders to President Trump, have floated interest rate caps. Most recently, President Trump has suggested pursuing a nationwide cap through an executive order. What has been largely absent from the conversation is a clear assessment of how such policies would affect small businesses and underserved communities.
Financial institutions extend credit to borrowers with limited or imperfect credit histories precisely because higher rates help offset the risk of default. When those rates are capped, lenders are forced to tighten their standards. The result is simple and predictable. There will be fewer approvals and lower credit limits, with one study showing that a 10% cap would leave almost 90% of current credit cardholders without access to credit.
For Hispanic entrepreneurs, many of whom are first-generation business owners, immigrants, or sole proprietors, this risk is especially acute. These entrepreneurs often rely on personal credit cards or small lines of credit to launch and sustain their businesses. If lenders are no longer able to price risk appropriately, they will not extend credit to applicants with thin credit profiles. This goes to show that a policy designed to lower costs could instead eliminate access altogether.
The ripple effects extend beyond business owners themselves. Consumers also rely on credit to manage everyday expenses, especially during economic uncertainty. When consumers lose access to credit, spending declines. When spending declines, small businesses feel it first. A contraction in credit availability would weaken local economies, reduce job growth, and slow the momentum that Hispanic-owned businesses have built over decades.
At the Florida State Hispanic Chamber of Commerce, we believe the goal should be expanding responsible access to credit. That includes promoting financial education, encouraging competition among lenders, and supporting policies that increase transparency without cutting off opportunity.
As lawmakers debate the future of credit policy, we urge them to listen to the voices of small business owners who live these realities every day. Policies that limit credit may sound appealing in theory, but in practice, they risk closing doors that entrepreneurs have worked for generations to open.
Julio Fuentes is CEO of the Florida State Hispanic Chamber of Commerce.
