Bowman, Supporting Small Businesses · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Mar 31, 2026
Bowman’s bottom-up capital revision aims to protect community and regional banks’ central role in relationship-based small‑business lending—noting banks hold roughly $600 billion in loans under $1M, the smallest banks (<$10B assets) hold nearly one‑third of those, and very large banks (> $700B) still supply meaningful shares—so capital rules are being designed to avoid unintentionally undercutting SME lending.
Bowman, Supporting Small Businesses · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Mar 31, 2026
Bowman says U.S. Basel III will be explicitly pro–small-business by cutting capital risk weights on small business loans (from 100% to 65% for investment‑grade loans > $1M and to 75% for loans < $1M), freeing capital to expand SME lending and favoring banks with strong small‑business franchises.
Bowman, Supporting Small Businesses · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Mar 31, 2026
Regulators are proposing capital rules that treat small-business credit cards and unused lines based on actual repayment risk—reflecting rising SME revolving balances—and signaling that utilization, repayment history, and line-management data will increasingly affect banks’ capital and supervision.
Bowman, Supporting Small Businesses · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Mar 31, 2026
Fed governor Bowman frames small-business credit as central to the Fed’s dual mandate and says regulatory calibration should be judged by its impact on SME lending, noting SMEs employed 59 million Americans in 2023 (about half of private-sector jobs), generated $16 trillion in revenue and 44% of GDP, and urging that policy assess whether regulations support or restrict lending to these firms.
Bowman, Supporting Small Businesses · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Mar 31, 2026
Banks report tighter small‑business credit standards even as many small firms plan to expand, pushing them toward alternative/higher‑cost financing (notably credit cards) and raising risks for unsecured SME credit and future credit quality.