WASHINGTON – The Regional Bank Coalition released data today from the Small Business Administration showing that regional banks make billions of dollars in loans to small businesses in the states of Senate Banking Committee members. Regional banks, which operate traditional business models, have said they would increase lending in the states in which they operate if Senate Banking Chairman Richard Shelby’s bill to base regulation on risk becomes law.
“Regional banks are currently devoting hundreds of millions of dollars to complying with unnecessary regulations that do nothing to improve the safety and soundness of the financial system,” said William Moore, Executive Director of the Regional Bank Coalition. “They are ready to devote that money instead to increasing lending to small businesses, but they need Congress to change the law to allow them to do so.”
The data, obtained from the Small Business Administration and covering only loans made by regional banks under the agency’s 7(a) program, gives a partial look at the amount of small business loans made by regional banks in each state. Regional banks also make billions of dollars in additional loans under other programs.
“At a time when policymakers are looking to broaden the economic recovery, regional banks stand at the forefront of working with small businesses around the nation,” Moore added. “Senator Shelby’s proposal would maintain responsible oversight of banks and monitor systemic risks while allowing regional banks to increase loans and services to small businesses.”
Regional banks are leading small business lenders in many states. Huntington, for example, is the number one small business lender under the 7(a) program in both Ohio and the nation.
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Source: Small Business Administration data compiled by National Association of Government Guaranteed Lenders
About the Regional Bank Coalition: The Regional Bank Coalition is a group of regional banks that support regulation based on risk and business model to ensure safety and soundness. For more information, visit www.regionalbanks.org or follow on Twitter @rgnlbanks.