ICBA Statement on CFPB Small-Business Proposal Outline
Washington, D.C. (Sept. 15, 2020) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today's Consumer Financial Protection Bureau outline of proposals to implement small-business loan data collection and reporting rules.
"Community banks are the unequivocal leaders of the U.S. economic recovery due to their outsized role as providers of Paycheck Protection Program loans to our nation’s small businesses. Unfortunately for local communities, today's Consumer Financial Protection Bureau proposal to apply small-business data collection and reporting mandates to community banks would undermine this critical relationship-based banking model, which has supported small businesses throughout the coronavirus pandemic.
"ICBA appreciates that the CFPB proposal would exempt community banks with $100 million to $200 million in assets, but we continue calling on the bureau to exercise its authority to fully exempt community banks. Mandatory data collection and reporting is entirely inconsistent with the non-homogenous nature of community bank small-business loans—many of which have been a lifeline to entrepreneurs and their employees during this pandemic. Further, it would impose new and costly burdens on community banks, limiting access to badly needed credit for small businesses at the worst possible time.
"While ICBA continues to support pending legislation to repeal the Section 1071 mandates, we look forward to continuing to work with the bureau to ensure reasonable solutions as it develops this regulation amid the ongoing coronavirus pandemic and economic downturn."
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA 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.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 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.
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