ICBA Strongly Opposes SBA Rule Opening 7(a) Program to Unregulated Fintechs

Washington, D.C. (April 14, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Small Business Administration final rule on its 7(a) program.

“ICBA strongly opposes today’s Small Business Administration final rule lifting the moratorium on the number of non-federally regulated institutions, including nonbank fintech companies, that can make loans under its 7(a) program.

“As ICBA told policymakers in a recent comment letter to the SBA and joint letters to the agency and Congress, this rule would undermine the 7(a) program and unintentionally harm the very borrowers the SBA is trying to aid. And as members of Congress have told the SBA, the rule establishes broad and sweeping changes that do not reflect congressional input or authorization.

“Instead of opening the 7(a) program to unregulated entities, the SBA should focus on maximizing the community bank partnerships that have expanded lending in underserved areas. ICBA will continue working to address this troubling final rule to ensure the SBA 7(a) program continues to support small businesses in local communities while preserving safeguards against fraud and abuse.”

About ICBA

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 employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 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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