#United States #Charles Town #BCT Bank #Alice Frazier #ICBA

Advocacy for Small Business Lending by BCT Bank

In a pivotal moment for community banking, Alice P. Frazier, the President and CEO of BCT-Bank of Charles Town, addressed lawmakers yesterday at the first House Small Business Committee hearing of the 119th Congress. Representing the Independent Community Bankers of America (ICBA), Frazier called for necessary regulatory and tax reforms aimed at revitalizing lending to small businesses across the nation. This address marks a significant step in advocating for policies that support local economies and promote job creation.

Frazier emphasized the importance of community banks in the lending landscape, noting that due to their relationship-focused approach, they are capable of providing a substantial share of small-business loans. She articulated the need for an updated regulatory framework that would allow these banks to increase support for qualified borrowers.

Key Proposals for Legislative Changes

Frazier laid out a series of recommendations for lawmakers that aim to create a more favorable environment for lending. These include:

• - Relief from Data Collection Requirements: Frazier supports the repeal of the Consumer Financial Protection Bureau's 1071 small-business data collection mandates. She highlighted the potential burdens this places on community banks, which are already dedicated to supporting small businesses.
• - Tiered Regulation Updates: There is a pressing need for a comprehensive reassessment of regulatory thresholds, which would better accommodate the diverse needs of banks while promoting small business support.
• - Tax Reforms: Frazier urged for the preservation and expansion of a pro-growth tax climate, specifically advocating for the extension of Section 199A of the Tax Cuts and Jobs Act. This provision is crucial for pass-through businesses that constitute a major segment of community banking customers.
• - New Capital Sources: To enhance small business lending, Frazier called for initiatives that would facilitate new sources of capital for community banks.
• - Promoting New Bank Formation: Frazier endorsed Rep. Andy Barr's Promoting New Bank Formation Act, acknowledging the role that new community banks could play in stimulating economic activity and fostering innovation in banking services.

The Role of BCT Bank and Community Banking

BCT Bank, recognized as a primary participant in its locality, has a longstanding commitment to supporting the financial needs of its community. Founded in 1871, the bank serves various regions through eight branch offices and additional loan production locations. Currently holding about $877 million in assets, BCT Bank prioritizes residential and commercial lending services, including being an SBA Preferred Lender.

With accolades such as being named in American Banker’s list of Top 200 Community Banks and multiple categories in the LoudounNow Readers' Poll, BCT Bank has established itself as a trusted financial institution. Their services extend beyond lending, offering personalized trust management through BCT Wealth Advisors and comprehensive online banking solutions.

Looking Ahead

Frazier’s advocacy at the Congressional hearing represents a critical opportunity for stakeholders in the community banking sector. By partnering with lawmakers, community banks like BCT Bank can drive the necessary changes to support economic growth at the grassroots level. The calls for reform not only aim to benefit lending practices but also inspire confidence in the financial systems that small businesses rely on.

As she concluded her address, Frazier reiterated the potential community banks hold in fueling local economies and emphasized her commitment to fostering an environment where both banks and their customers can thrive. The comprehensive reform strategies presented by the ICBA will be vital for addressing contemporary challenges in the banking landscape, ensuring that small businesses have access to the funding they need to flourish in today’s economy.