Residential and commercial real estate developers across the country are working to revitalize cities following the covid-19 pandemic. Pittsburgh is no exception, where buildings in the city’s urban center are being modified to attract businesses and promote growth. However, a recent Federal Reserve proposal to reduce the cap on debit card interchange fees would harm small businesses and retail entrepreneurs looking to establish themselves in these new developments.
The Fed’s proposal to lower the cap from 21 cents to just 14.4 cents may look like a minor regulatory change. However, the impacts of this change would have significant consequences on small businesses looking to expand and suppliers that contract with developers. This proposal makes it harder for small businesses to spur economic recovery efforts in cities like Pittsburgh.
We believe in developing engaging spaces that recognize Pittsburgh’s history and the heritage of its neighborhoods and that support the ability of minority-owned businesses to grow in new retail spaces.
As the economy continues to recover from the pandemic, high inflation rates and market uncertainty, small-business owners need financial institutions to provide them with positive certainties to allow their businesses to grow. The Fed must reconsider its debit card interchange fee proposal and prioritize policies that exacerbate economic recovery and growth.
Brett Walsh
Oakland
The writer is a principal at Hullett Properties, which is redeveloping the Triangle Building in downtown Pittsburgh.