Washington, D.C. (June 3, 2020) — The Independent Community Bankers of America® (ICBA) today testified before Congress on promoting inclusive lending during the pandemic by community development financial institutions, minority depository institutions, and other community banks.
Testifying before the House Financial Services Committee's Subcommittee on Consumer Protection and Financial Institutions, ICBA Minority Bank Council Vice Chairman James Sills focused on his bank’s experience with the Paycheck Protection Program, which he said is a perfect fit for his customer profile. The president and CEO of M&F Bank in Durham, N.C.—a CDFI and MDI—estimated that his bank’s nearly $13 million in PPP loans helped preserve some 1,200 jobs in the communities it serves.
Sills also expressed support for House-passed provisions that provide small-business borrowers more time to spend PPP funds and reduce the percentage of funds that must be spent on payroll costs. He also called for additional changes to the PPP that would:
- Allow a presumption of compliance for loans of $1 million or less with borrower certification.
- Provide a straightforward approach to loan forgiveness, including a loan-forgiveness calculator.
- Create a streamlined form for self-employed borrowers and independent contractors.
Citing the success of dedicating PPP funding for community bank lending, Sills also expressed support for the Small Business Administration's move to set aside an additional $10 billion for CDFIs and committee Chairwoman Maxine Waters' (D-Calif.) call to set aside an additional $10 billion for MDIs.
"We must ensure that the pandemic does not set back the critical policy goal of promoting credit and financial opportunity and prosperity in America’s minority communities," Sills said. "The social unrest and protests we are witnessing today—not only in our cities but in our suburbs and smaller towns as well—only raise the stakes for achieving this goal."
About ICBA
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.
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