WASHINGTON – May 17, 2021 – The Innovative Lending Platform Association (ILPA) today urged the U.S. House of Representatives to uphold the Office of the Comptroller of the Currency’s (OCC) rule on “National Banks and Federal Savings Associations as Lenders,” also known as the “True Lender” Rule:
“The True Lender Rule has helped millions of small businesses access critical capital through ILPA members,” said Scott Stewart, ILPA’s CEO. “Overturning this rule will create uncertainty in the small business finance market, hamper innovation and decrease small business access to capital. These unintended consequences will particularly harm those in minority and underserved communities.
“The True Lender Rule provides important legal certainty for national banks and federal savings associations regarding loans issued in conjunction with a third party, including fintech companies. Responsible partnerships between banks and fintech companies expand access to capital for online customers and small businesses. Fintechs use technology that improves the underwriting process and overall experience for borrowers, thus making access to credit that much easier.
“What has been promoted as a way to help consumers will actually hurt the small business communities most in need of capital, especially as the economy recovers from the pandemic. We urge the House of Representatives to uphold the True Lender Rule and ensure that America’s small businesses, still reeling from the pandemic, continue to have access to the capital they need to grow and run their businesses,” added Stewart.
“We look forward to working with Congress and the OCC to ensure that small business borrowers are protected while accessing the capital they need,” Stewart stated.
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