Washington, D.C. (April 14, 2015)—The Independent Community Bankers of America® (ICBA) today expressed its strong support for legislation to repeal costly and cumbersome new government paperwork requirements that would waste critical community bank resources needed for business-lending activities. The Right to Lend Act, introduced by Rep. Robert Pittenger (R-N.C.), would repeal Section 1071 of the Dodd-Frank Act, which requires financial institutions to collect and report to the government detailed information concerning small business credit applications.
“The small business data-collection requirements under the Dodd-Frank Act fall disproportionately on community banks, which currently make more than half of the nation’s small business loans,” ICBA President and CEO Camden R. Fine said. “ICBA strongly supports the Right to Lend Act, which would implement a provision of ICBA’s Plan for Prosperity platform to support continued small business access to community bank credit.”
Section 1071 requires financial institutions to collect and report information concerning small business credit applications, which will take time and other resources away from actual lending. The cost of this new mandate will be disproportionately high for community banks, which have proven for decades that they are prolific small business lenders. Further government burdens and paperwork filings will only restrict small business access to credit. In addition, data collected by community banks and subsequently made public by government agencies could compromise the privacy of applicants.
The Right to Lend Act would fully repeal this section of the Dodd-Frank Act, implementing a provision of ICBA’s Plan for Prosperity regulatory relief platform for the 114th Congress. Read ICBA’s Plan for Prosperity.
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services.