Independent Banker - August 2021 - 90

CONNECTIONS MEMBER BENEFITS
Closing the ILC loophole
We need to build bipartisan support
for a legislative fix to close the
industrial loan company (ILC)
loophole of the Bank Holding
Company Act. ICBA was the first
national banking trade group to
endorse the Eliminating Corporate
Shadow Banking Act of 2019, which
would close the loophole and keep
large tech companies like Rakuten,
Square and SoFi from pursuing
ILC charters. These companies
should not be able to own ILCs
as they thereby gain access to
banking activities without facing the
same regulatory scrutiny as other
financial institutions.
3 issues to discuss
with policymakers
his month is an opportune time
to connect with your members of
Congress, and, with a particularly long
August recess scheduled this year, you
have even more time to tell your story.
Having in-person or virtual meetings
with lawmakers and their staff is the
perfect way to keep up the momentum
from this year's session and ensure
they understand the perspective of
community bankers like you.
Unsure what to talk about? The
most important thing to share is
the story of how your community
bank helped customers get through
the pandemic. Share with them
the impact community banks like
yours had. Community banks
saved 33.7 million jobs through
the Paycheck Protection Program
(PPP), acting as a lifeline for small
businesses, especially minority-owned
and veteran-owned businesses, which
T
community banks served at higher
rates than large banks.
Visit icba.org/advocacy to read
about ICBA's positions on the
latest hot-button issues, as well as
advocacy actions that can move the
needle. Below are three key issues to
consider discussing.
Credit union hearings
With recent headlines about taxadvantaged
credit unions buying
taxpaying banks, policymakers need
to know that credit unions have
overstepped their original mandate.
ICBA is calling on Congress to hold
hearings on these acquisitions and
the industry's aggressive and abusive
exploitation of their tax exemption.
Visit icba.org/wakeup to access
talking points and ICBA's playbook
with key messaging and guidance
about this important issue.
90 Q ICBA Independent Banker Q August 2021
A fair tax code
ICBA is defending the 2017 tax cuts,
including a 21% corporate tax rate,
lower individual rates, the deduction
for pass-through income, current
capital gains taxes and the higher
estate tax exemption. ICBA is also
calling for the creation of tax credits
or deductions for community banks
that lend to low- and moderateincome
customers, businesses,
farmers and ranchers. To that end,
ICBA supports the Enhancing Credit
Opportunities in Rural America
(ECORA) Act, which would create
a tax exclusion for interest on loans
secured by agricultural land and rural
residential mortgages. 
Tell your story
ICBA's Marketing &
Communications Toolkit
has resources to help you
craft your community
bank's message when
walking into a meeting
with local policymakers.
icba.org/marketingtoolkit
http://www.icba.org/advocacy http://www.icba.org/wakeup http://www.icba.org/marketingtoolkit
Independent Banker - August 2021

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