At SIMBA, we believe strong local economies depend on small businesses having access to the resources, capital, and financial services they need to grow. That is why SIMBA recently signed onto national comment letters organized by the National Community Reinvestment Coalition (NCRC) opposing proposed changes to the Community Reinvestment Act (CRA).
The CRA has played an important role for nearly five decades by encouraging banks to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods. According to the NCRC letter, CRA has helped support access to mortgages, small-business loans, affordable housing, community facilities, bank branches, and community investments. From 2010 to 2024, nearly $5 trillion in CRA-qualifying mortgages and small-business loans were made.
Why This Matters to Small Businesses
Access to capital can make a significant difference for a small business. Whether a business is trying to open its doors, purchase equipment, hire employees, expand into a new location, or simply keep operating through a challenging period, access to responsible banking and lending can be an important part of the equation.
The proposed changes could alter how banks receive CRA consideration for financing small businesses and community development activities. The NCRC letter raises concerns that the proposed approach could weaken the connection between CRA and meaningful local economic opportunity, including by allowing certain small-business financing to receive CRA credit without demonstrating a direct benefit to low- and moderate-income people or communities.
For organizations like SIMBA that work directly with entrepreneurs and small-business owners, maintaining meaningful community investment and access to capital is an important part of building a healthy local economy.
A Broader Impact on Communities
The CRA isn't only about business loans. It also influences investment in affordable housing, community facilities, nonprofit organizations, and other resources communities rely on.
The NCRC letter notes that the proposed changes could reduce scrutiny of community development activities for hundreds of banks. It also raises concerns about reduced accountability for bank branches and basic banking services, which can be particularly important for older adults, rural communities, and people who need in-person or language-accessible banking services.
For nonprofits and community organizations, the proposed changes could also affect access to bank grants and other forms of support. The letter notes that stricter requirements around grants could make it more difficult for smaller nonprofits to absorb administrative costs and documentation requirements.
Adding Our Voice
SIMBA joined hundreds of organizations nationwide in signing the NCRC's letters. 471 organizations signed the letter to Congress, while 493 organizations signed the companion letter to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
By adding our name, SIMBA is joining a broader group of organizations advocating for continued accountability and community investment through the CRA.
The NCRC letter asks Congress to ensure that any changes to the CRA preserve meaningful accountability for banks to meet the credit needs of their communities and calls for additional analysis of how the proposed changes could affect affordable housing, community development, small businesses, banking access, and nonprofits.
Why SIMBA Participated
SIMBA's work is centered on supporting entrepreneurs, microbusinesses, small businesses, nonprofits, and consumers throughout Spokane and Eastern Washington. That means paying attention not only to what happens at the local level, but also to policies that can shape the resources available to the communities we serve.
Signing onto this letter is one way SIMBA participates in that larger conversation and supports continued attention to the financial systems that affect small businesses and local communities.
We'll continue following this issue and sharing relevant updates as they become available.
Read the full NCRC letter to Congress: The letter and list of supporting organizations are available in the attached document.
