November 20, 2019
Media Contact: Scott Stewart – scott@innovativelending.org
On behalf of our small businesses customers, the Innovative Lending Platform Association applauds the OCC for reaffirming the Valid When Made doctrine as described by Congress. This signals a significant victory for small business’ fair access to capital and credit across the country. We believe this rule will increase stability in the securitization markets and ensure everyday Main Street small business owners have access to efficient, low cost funding.
We believe this action balances customer protections, availability of credit through a national lending market, and safe and sound bank originated lending—especially at a time of rapid technological change and innovation.
In departing from the valid-when-made doctrine, the 2nd Cir. court’s decision in Madden v. Midland substantially disrupted secondary loan markets and access to credit card loans and many types of consumer and small business loans. The national market for small businesses lending suffered as a result of that uncertainty for too long.
About ILPA
The Innovative Lending Platform Association (ILPA) is a leading trade organization representing online lending and service companies serving small businesses. United by a shared commitment to the success of small businesses in America, the ILPA advances best practices and standards that support responsible innovation and access to capital for small businesses. In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, introduced the SMART Box™, which stands for “Straightforward Metrics around Rate and Total cost.” The SMART Box is a first-of-its-kind model pricing disclosure and comparison tool focused on empowering small businesses to better assess and compare finance options. The SMART Box is available for broader adoption by lending platforms. Additional information about the ILPA and the SMART Box initiative is available at: www.innovativelending.org