Often times, good intentions have dire consequences. On Monday, the Senate is expected to vote on legislation that will have an impact on our nation that could far out way the impact of the healthcare reform package. Originally seen as financial reform, this bill (Sponsored by Senator Chris Dodd) lays out the foundation for a complete reform of the nation’s financial regulatory system. The goal is clear and admirable – to minimize the chances of another financial meltdown. The consequences within the numerous provisions of the 1,400 page bill will in fact have catastrophic affects on consumers and the overall economy.

The Consumer Financial Protection Act of 2009 creates a new layer of federal bureaucracy known as the Consumer Financial Protection Bureau. On the surface it sounds like a great idea, however, as one digs deeper, they will see that the truth is that this will create a public option in financial reform, much like health care reform. It would result in a government managed financial system to oversee credit and banking. This legislation would limit choices and, in many cases, restrict access to credit for those that need it the most – current and future small businesses owners.

Under the proposed legislation, access to the credit that 26.7 million businesses need would be limited because of the bill’s one-size-fits-all approach to reform. The intended purpose is to protect consumers from unfair practices, but the true effect will be that it will reduce the amount of choices and credit available. The one-size-fits-all philosophy completely negates the fact that many of these small business owners rely on consumer credit to meet payroll, improve and/or expand their businesses, and innovate. Ultimately, it will lead to an increase in business closings, a reduction in job growth and a lack of the entrepreneurial opportunity our country provides.

The last thing we need is another government takeover of an industry. The Democrats will say that we need this type of protection to prevent another financial meltdown. No one argues that, or that changes need to be made, but as in most cases the devil is in the details and the dire consequences of this legislation far out way the good intentions.