Eight members of the Independent Community Bankers of America (ICBA) met with President Obama on Tuesday to discuss concerns over banking regulations that slow the increase in small business lending that the White House so desires.
The meeting comes just weeks after Obama met with chief executives of the nation’s largest banks to discuss how they may also boost small business lending, which fell by 4 percent or $11 billion over the past six months.
Community banks, which do not take part in risky lending practices, feel burdened with aggressive examinations by regulators that hinder small business lending. This environment is worth reviewing by the Obama administration since community banks with $1 billion or less in assets represent 31 percent of small business lending, while only representing 12 percent in U.S. bank assets.
According to accounts of the meeting, Obama took note of bankers’ concerns over the red tape involved in loans backed by the Small Business Association (SBA). The bankers questioned if changes could be made to qualify more people for loans through SBA programs.
Though it will take some time for the Obama administration to address the ICBA’s concerns, there are some programs already on the drawing board to help community banks, one of which is sponsored by the Treasury Department. That program is aimed at providing extremely low interest rate loans to community banks that use the capital for small business lending.
“ICBA is pleased the President chose to meet with community bankers to discuss ways the administration can help community banks enhance their lending. We thank the President for hosting this meeting and for listening to the needs of local community banks,” added Fine.
