U.S. Rep. Andy Barr (R-KY) on April 15 sponsored the Promoting Access to Capital in Underbanked Communities Act of 2021, which would expand access to banking services in rural areas and help jumpstart economic recovery.
“The key to economic growth and recovery throughout the country is having access to capital for individuals, families and small business entrepreneurs,” Rep. Barr said. “My proposal rolls back government onerous regulations and paves the way for investment to flood into underserved communities to make sure that the economic recovery is not uneven.”
If enacted, H.R. 2561 would ease regulations that hinder new bank charters and incentivize new bank and capital formation in underserved rural areas, according to information provided by the congressman’s office, which noted that recent trends in bank consolidation that disproportionately affect rural areas have left many communities without access to bank branches, while burdensome regulations have deterred new bank formations to fill the gap.
The legislation would direct banking regulators to conduct a three-year phase-in of certain capital requirements and to make other adjustments that would allow underbanked populations to access banking services, according to the information.
Rep. Barr in September 2020 introduced the Promoting Access to Capital in Underbanked Communities Act of 2020, H.R. 8410, with cosponsor U.S. Rep. Steve Stivers (R-OH), but the measure expired before the end of the 116th Congress.
The reintroduced bill is supported by the American Bankers Association and the Independent Community Bankers of America.