To the editor,
Regarding the April 13 op-ed “Banks are wrong to oppose CFPB data collection for small-business loans” by Jesse Van Tol:
America’s leading banks long have actually supported efforts from policymakers to advance our shared objectives of funding the American Dream for minority- and woman-owned companies and broadening access to credit in underserved neighborhoods. New Consumer Financial Protection Bureau data-collection requirements in the small-business financing market can assist even more this goal, and banks are completely devoted to dealing with the Bureau on establishing a well-founded Section 1071 guideline that provides on its intent for several years to come.
Recognizing our shared dedication to safeguard access to credit within the well-regulated, well-supervised banking market, CBA has actually promoted for the Bureau to think about a number of essential suggestions our company believe will assist lessen unintended repercussions for the small companies we are all working to support, consisting of a phased method for execution. These brand-new requirements should likewise use to all banks — both bank and nonbank. It’s regrettable Mr. Van Tol mischaracterized these good-faith factors to consider, which are meant not to undermine the CFPB’s efforts, however to enhance the precision and effectiveness of the Bureau’s collection procedure.
For more than 200 years, bank loans have actually assisted small companies broaden operations, work with brand-new staff members, or open a brand-new area. Throughout the worst of the COVID-19 pandemic, banks worked relentlessly to administer more than 4 million Paycheck Protection Program loans, while likewise revealing historical efforts to supply resources for minority-owned small companies and business owners. Expanding access to credit in underserved neighborhoods is not simply excellent company, it shows the essential objective of lenders — to fund the American Dream and promote fair financial development throughout every neighborhood they serve.
David Pommerehn, Senior Vice President & General Counsel, Consumer Bankers Association