FOR IMMEDIATE RELEASE
ICBA Applauds House Financial Services Committee Passage of Small Business Lending Fund Act of 2010
Community Banks Are Well-Positioned to Get Credit Flowing to Main Street
Washington, D.C. (May 19, 2010)—Independent Community Bankers of America (ICBA) Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., issued this statement today following House Financial Services Committee passage of H.R. 5297, the Small Business Lending Fund Act of 2010.
“ICBA applauds the House Financial Services Committee for passing this critical legislation, which will help direct credit to our nation’s small businesses which drive job creation and economic growth in communities nationwide. Our nation’s nearly 8,000 community banks are prolific small business lenders and are in the best position to get credit flowing on Main Street. Interested community banks will use this new capital to boost lending. In fact, the $30 billion fund could translate into as much as $300 billion in new credit to local customers—and further aid in America’s economic recovery.
“ICBA is also pleased that any language aimed at expanding the business-lending powers of tax-subsidized credit unions was not attached to this legislation. Credit unions are prohibited under law from further expanding into small business lending so they can focus on their tax-exempt mission of serving people of modest means. The nation’s taxpaying community banks will continue to oppose the credit unions’ power grab since it will ultimately hurt federal, state, and local governments through lost tax revenue.
“ICBA thanks the Obama Administration and Chairman Barney Frank (D-Mass.) for their leadership on this important issue. We will work to ensure this legislation is enacted into law so that community banks can continue to serve their small business customers throughout the land.”