ICBA to Fed: Main Street program should serve Main Street

Apr 17, 2020

ICBA told the Federal Reserve it is concerned the agency's Main Street Lending Program excludes small businesses because it has a minimum loan amount of $1 million. In a letter to the Fed, ICBA said the minimum loan size should be no higher than $100,000, citing a recent survey of ICBA board members that found little interest in the program.

ICBA also said community bankers are concerned that the program is too complicated and puts too many responsibilities on the lender. ICBA recommended dropping the requirement that lenders retain a 5 percent interest in the loans it originates.

In a separate joint letter to House Financial Services Committee member Warren Davidson (R-Ohio), ICBA and other groups called on lawmakers to ensure Subchapter S corporations and other pass-through businesses can access the Main Street lending facilities.