FOR IMMEDIATE RELEASE
ICBA and 28 State Community Bank Associations Urge Prompt Passage of Small Business Lending Fund Bill
Washington, D.C. (June 15, 2010)—The Independent Community Bankers of America (ICBA) and 28 affiliated state associations sent a letter to House Banking Committee Chairman Barney Frank (D-Mass.) and Ranking Member Spencer Bachus (R-Ala.) today urging prompt passage of the proposed Small Business Lending Fund Act of 2010 (H.R. 5297). ICBA said that the $30 billion in capital provided by the Small Business Lending Fund (SBLF) could help community banks provide as much as $300 billion in additional small business lending.
“On behalf of ICBA’s nearly 5,000 members and our state partner community banking associations, we strongly support the proposed Small Business Lending Fund and urge prompt passage of this important legislation,” said Camden R. Fine, ICBA president and CEO. “The nation’s 8,000 community banks are well-positioned because of their established relationships with small businesses in their communities to use the fund to get credit flowing.”
Under H.R. 5297, interested banks with less than $1 billion in assets could receive capital investments up to 5 percent of their risk-weighted assets, and those with between $1 billion and $10 billion in assets could receive up to 3 percent. The SBLF has important incentives to encourage greater small business lending by reducing the dividend rate community banks pay on the capital as they increase their lending.
“ICBA firmly supports the central purpose of the program to spur further lending to small businesses by means of community banks,” said Jim MacPhee, ICBA Chairman and CEO of Kalamazoo County State Bank, Schoolcraft, Mich. “We applaud the new program’s focus on getting funds to Main Street small businesses using Main Street community banks. We urge all members of Congress to vote for H.R. 5297.”
To read ICBA’s letter, visit www.icba.org.