Washington, D.C. (Feb. 5, 2025) — At the first House Small Business Committee hearing of the 119th Congress, the Independent Community Bankers of America (ICBA) today called on lawmakers to advance regulatory and tax relief that will further enhance lending to the nation’s small businesses.
On behalf of the only national association that exclusively represents the nation’s community banks, ICBA Vice Chair Alice Frazier—the president and CEO of Bank of Charles Town, W.Va.—advocated policies to spur economic growth and job creation in local communities.
“The new Congress and administration present an opportunity to transform the regulatory environment for community banks, sparking economic growth in rural, suburban, and urban markets,” Frazier said. “While we are ready to lend today to all qualified borrowers, our capacity could be yet further enhanced by regulatory and tax relief that would allow us to direct more resources toward helping our customers.”
Noting that community banks account for an outsized share of the nation’s small-business loans due to their relationship-based business model that sets them apart from larger, out-of-market lenders, Frazier encouraged policymakers to:
Provide relief from the Consumer Financial Protection Bureau’s 1071 small-business data collection and reporting requirements through Chairman Roger Williams’ 1071 Repeal to Protect Small Business Lending Act.
Advance tiered regulations through a comprehensive update of regulatory thresholds.
Preserve and expand a pro-growth tax environment, such as by extending Section 199A of the Tax Cuts and Jobs Act for pass-through business.
Facilitate new sources of community bank capital to support small business lending.
Promote the formation of de novo community banks through Rep. Andy Barr’s Promoting New Bank Formation Act (H.R. 478).
ICBA’s complete testimony is available on the ICBA website. Its comprehensive “Repair, Reform, and Thrive” plan and open letter to the 119th Congress outline a complete set of reforms to address the nation’s policy challenges.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.
