Washington, D.C. - February 10, 2018 - (The Ponder News) -- Rep. Mia Love’s bill to make it easier for families, small businesses, start-ups, and family farms to obtain loans from small financial institutions has passed the House of Representatives.
H.R. 4771, The Small Bank Holding Company Relief Act eases overregulation on these banks and savings and loans, helping these institutions raise capital so they can make loans in their community.
Congresswoman Love said: “Smaller banks are the lifeblood of many communities in Utah. They support the credit needs of low and middle income families as well as the small businesses, farmers and entrepreneurs that create jobs.”
“Sometimes these small banks are the only lending source for many hard working and ambitious people,” Rep. Love added.
Doug DeFries C.E.O., Bank of Utah said: “Rep. Love's bill will make a big difference to the Bank of Utah, to our customers and the community at large. We are impressed at her ability to show bipartisan leadership to obtain success on a very important issue like this.”
Len E. Williams, CEO, Bank of American Fork and the People’s Intermountain Bank family: “We are thrilled that Congresswoman Love’s leadership has resulted in bipartisan action bringing real relief to our community. Small banks play such an important role in supporting local businesses, families and individuals in our communities, and this law makes it easier for that to happen.”
In technical terms, Rep. Love’s bill would raise the consolidated asset threshold under the Federal Reserve’s Small Bank Holding Company Policy Statement from $1 billion to $3 billion. The Policy Statement exempts small institutions under the threshold from the Fed’s Tier 1 capital-to-risk weighted assets ratio requirements. The effect of the increased threshold will be to allow more of the smaller bank holding companies to downstream the proceeds of any debt or equity they issue to their banking subsidiaries, helping these institutions make loans and provide services in their communities.
The bill is cosponsored by Representatives from across the aisle, Representative Josh Gottheimer D-NJ, and Representative Gregory Meeks D-NY who say the bill is an important step toward supporting community-focused institutions.
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