But as Tiffany Tarrolly explains, the federal government has a plan to end predatory lending, and that plan could turn pawn shops into a thing of the past.

"There will be no longer any short to loan places to go to if this bill goes through," said Richard Buschman, who works at S and P Loans.
He says it costs a customer about 26 dollars for a 350 dollar two week loan.

"Really that's not bad now granted if you did it ever y2 weeks over the course of a year, yes, you're talking high interest but its not designed to do that if you want a long term loan then you go to a bank."

"Sometimes you need cash on the spot, got to have food on your table and gas in your car."

The Senate Bill 500 says a loan is a loan, no matter where it's from.
The legislation would cap interest rates at 36 percent.
So if someone borrows 100- dollars and pays it back in two weeks, the store would earn less than two- dollars in profit.

You're talking politician's knee jerk reaction to the banking crisis it went through, and they don't look at the whole picture."

Buschman says, unless legislators take a closer look at the bill, and make an exception for pay-day type loan shops... he, and a whole lot of others will be out of a job.

"My employer was good enough to take a chance on me and hire me while unemployment rate being well over 8 percent right now, the last thing we need is to put more people including myself out of work."

In a time when more people than ever need short- term loans for such expenses as emergency medical bills or car breakdowns... Buschman hopes the senate will reconsider... and finally give the little guys a break.
Otherwise, he knows S & P Loans will close.
In Cloquet, Tiffany Tarrolly, The Northland's NewsCenter.

The bill would also effect several other areas such as mortgages and car loans.