Data Demonstrate Community Bank Impact as Senate Debates New Stimulus
Washington, D.C. (July 28, 2020)—With new Small Business Administration data showcasing the outsized role of community banks in serving small businesses and underserved communities amid the COVID crisis, the Independent Community Bankers of America (ICBA) is urging the Senate to incorporate needed reforms in the next round of stimulus legislation.
SBA’s data demonstrates the overwhelming effectiveness of community banks in serving underrepresented small businesses via the Paycheck Protection Program. Community banks delivered the most PPP loans to:
- Minority-owned small businesses (72.6 percent).
- Women-owned small businesses (71.5 percent).
- Veteran-owned small businesses (63.4 percent).
Further, community banks served 98.2 percent of low-income or economically distressed counties, 96.6 percent of rural counties, and 92.4 percent of urban counties while processing PPP loans five to 10 days faster than other lenders.
"As the Senate debates the next stimulus package, lawmakers should heed the recommendations of the nation's community banks, which account for more than two-thirds of Paycheck Protection Program loans to small businesses," ICBA President and CEO Rebeca Romero Rainey said. "In the face of ongoing economic challenges, community banks are calling on Congress to advance specific policies that will have a meaningful impact on small businesses and jobs in local communities across America."
ICBA is calling on Congress to advance provisions in the Senate stimulus draft proposal to provide an intermediate forgiveness process for PPP loans under $2 million and streamlined forgiveness for loans under $150,000, an ICBA-advocated policy in bipartisan legislation (S. 4117/H.R. 7777) that Treasury Secretary Steven Mnuchin recently called on lawmakers to consider. As detailed in specific stimulus recommendations to Congress, ICBA and 42 state community banking associations are also advocating an online PPP loan-forgiveness calculator, liability protections from COVID-19-related lawsuits, and additional relief to help community banks support the economic recovery.
As the debate progresses, ICBA will continue working with Congress and the Trump administration to implement policies that will help community banks lead the economic recovery in local communities.
Reporters who are interested in learning more about ICBA’s suggestions for economic recovery should contact email@example.com or firstname.lastname@example.org to set up an interview with a leading industry expert.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
# # #