Grand Rapids Area Black Businesses: Credit card caps threatened Black entrepreneurs
At Grand Rapids Area Black Businesses (GRABB), we work every day to help Black entrepreneurs start, sustain and grow businesses in West Michigan. Our mission is grounded in a simple reality: thriving Black-owned businesses are vital to a robust, inclusive economy. But too often, the entrepreneurs we support are forced to do more with less. Less capital, fewer banking relationships and limited access to affordable credit.That is why GRABB believes it’s critical to speak up when public policy proposals risk making those barriers even higher.Across the country, including in Michigan, access to credit is not just a financial issue. It’s an economic opportunity issue. For Black Americans and Black owned small businesses, equitable access to affordable credit remains a steep uphill climb. So, when policymakers promote sound-bite solutions like capping credit card interest rates, we must look beyond the headlines and ask an important question: who benefits and who pays the price?
Credit cards are more than a convenience. For many Black-owned small businesses, they are lifelines. Unlike large corporations with deep financial reserves, small entrepreneurs often rely on credit cards to manage day-to-day expenses, cover payroll, purchase inventory and smooth cash flow between sales cycles. This is especially true in communities where access to traditional loans and long-standing banking relationships remains limited. Black owned businesses already face disproportionate barriers to credit. A 2025 analysis found that nationally, nearly 39% of Black business owners were denied loans, lines of credit or merchant cash advances, compared to 18% of White business owners. These gaps reflect decades of unequal access to capital and financial opportunity.Credit cards help fill that gap. Yet today, politicians on both sides of the aisle are proposing caps on credit card interest rates. Most recently, President Donald Trump announced via Truth Social that he is planning to issue an executive order to impose a national cap, framing it as consumer protection. While the intent may be understandable, what’s missing from the conversation is a serious discussion of the unintended consequences of a national cap.Interest rates are not arbitrary. They reflect the risk lenders take on when extending credit, particularly to borrowers with limited or imperfect credit histories. When lenders are prevented from pricing for risk, they respond by tightening access to credit. Research shows that strict rate caps lead to fewer approvals, fewer starter and secured cards, and fewer options for higher risk borrowers. For Black entrepreneurs and consumers who already struggle to access affordable credit, this could be devastating. The Progressive Policy Institute’s analysis suggests that a 10% cap on credit card interest rates could effectively mean millions of people would be turned away from mainstream credit and pushed toward predatory or unregulated alternatives.If we truly want to expand economic opportunity, we must focus on policies that strengthen safe, transparent and inclusive access to credit. That means supporting financial education, community-based lending and responsible credit products that meet people where they are. At GRABB, we believe economic equity is built by expanding opportunity, not shrinking it. Policies that limit access to credit, however well intentioned, risk cutting off the financial oxygen Black-owned small businesses need to survive and grow. Michigan’s economy is stronger when every entrepreneur has a fair shot. We should not lose sight of that.
Jamiel Robinson is founder and CEO of Grand Rapids Area Black Businesses.