Committees Advance ICBA-Supported Bill Strengthening Small-Business Lending

Mar 14, 2018
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Washington, D.C (March 14, 2018
)—The Independent Community Bankers of America® (ICBA) today thanked the House and Senate Small Business Committees for advancing legislation to strengthen the Small Business Administration 7(a) program. The bipartisan Small Business 7(a) Lending Oversight Reform Act (H.R. 4743 and S. 2283) includes targeted reforms to ensure the program continues expanding the reach of lending and credit services to a broader range of borrowers who would not qualify for a conventional loan.

“The Small Business Administration’s 7(a) loan program allows community banks to leverage their unique underwriting skills to more effectively serve the small businesses in their communities” ICBA President and CEO Camden R. Fine said. “ICBA and the nation’s community bankers thank House and Senate policymakers for promoting a robust and sustainable 7(a) program to help small businesses create jobs and strengthen our economy.”

H.R. 4743 and S. 2283 would:

  • strengthen the integrity of all SBA guaranteed lending programs by codifying the SBA Office of Credit Risk Management and Lender Oversight Committee, increasing transparency in the office’s budget, and providing guidelines for lender reviews and lender appeals rights;
  • safeguard the 7(a) program from abuse by codifying the SBA’s “Credit Elsewhere Test,” which requires lenders to fully substantiate and document the reasons a given applicant cannot be served with conventional credit; and
  • stabilize 7(a) program funding by allowing the SBA to lift the cap on general business loans by up to 15 percent of the limit if the cap is reached, as it was in 2015, which disrupted SBA lending and required emergency legislation.

ICBA looks forward to working with members of the House and Senate to continue advancing this legislation and urges House members to support the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) when it is sent over from the Senate.

About ICBA

The Independent Community Bankers of America®, the nation’s voice for nearly 5,700 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. For more information, visit ICBA’s website at