Sorry fellas, but I honestly don't follow your logic here.
1. OP says government regulation does not harm small business. Full stop. Blanket statement.
2. I point out that very recently enacted legislation has, in fact, killed off nearly every small business in an industry.
3. Are you arguing that the OP's point is still valid? Or that banking is some strange exception to the general rule? I genuinely don't understand the point you're trying to make. (Note I will agree with you that writing laws to fit every possible exception is not possible or advisable. Is that your only qualm with my point?)