In a letter to the Office of the Comptroller of the Currency, Senator Bob Casey (D-PA) highlights the positive effect SBICs have on job and economic growth, and expresses concerns that some banks are being told by CRA examiners that they will not receive full CRA credit for an investment in a SBIC if the SBIC isn't located in the bank's "assessment area,” as defined by CRA guidelines. The Senator goes on to say that current CRA guidelines clearly spell out that an investment by a bank in a SBIC should result in full CRA credit for the bank as long as the SBIC intends to finance businesses in the broader region that includes the bank's "assessment area.” Senator Casey's support of SBIC's is commendable and it is NASBICs hope that this letter will encourage the agency to review its existing procedures and make the necessary changes that will allow for consistency in providing full CRA credit for a bank investing in a SBIC, as SBICs are in fact listed in the CRA guidelines as a specific example of a CRA-qualifying investment a bank can make. A copy of the letter can be read by clicking here.
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