FILED IN: 2024 CAPITOL CONNECTIONS CONVENTION, ELFA, SMALL LENDER ACT, Challenges of Section 1071 of the Dodd-Frank Act, FINANCE REFORM, SMALL BUSINESS SUPPORT, ELFA ADVOCACY, SPRING 2024 TRENDS IN EQUIPMENT FINANCE, EQUIPMENT LEASE FINANCE ASSOCIATION TRENDS, ASSET FINANCE, LTI TECHNOLOGY FINANCE, DIGITAL TECH, LTI LEADERSHIP, LTI DIFFERENCE, OMAHA, NE FINANCE
17 JUNE 2024 | by Jeff Van Slyke, President/CEO, LTi Technology Solutions
As the CEO of LTi Technology Solutions, a charter member in the equipment leasing and finance industry, I am pleased to share insights from our recent participation at the 2024 Capitol Connections Convention. This milestone event, held on Capitol Hill, followed a recent visit by Nebraska’s Second District Congressman, Don Bacon, to our LTi corporate headquarters in Omaha.
The Importance Of The 2024 Capitol Connections Convention To The Equipment Finance Industry
Organized by the Equipment Leasing and Finance Association (ELFA), the 2024 Capitol Connections Convention aimed to amplify our industry’s collective voice, ensuring policymakers understand the impact of current policies on equipment leasing and finance. This event marked a significant step toward securing the future stability and fairness of our industry.
Joining me in Washington, DC were key members of our Executive Leadership Team: Randy Haug, and Travis Melchior. Our attendance underscored LTi’s continued commitment to driving innovation, leadership and advocacy in equipment finance on behalf of LTi and our community. The importance of advocacy and leadership in the equipment finance and leasing industry cannot be overstated, particularly at this moment in history.
Key Issues Discussed At The Capitol Connection Convention
On May 22nd, leaders from various ELFA member companies gathered in Washington, DC, to champion crucial issues affecting the equipment leasing and finance industry. This sector is vital to the US economy, financing over one Trillion Dollars of commercial equipment annually, representing 4.5% of the total $22 Trillion US economy. It is clear that our industry plays a pivotal role in the broader economic landscape.
At the event, a primary focus was the Consumer Finance Protection Bureau’s (CFPB) regulations, the implementation timeframe for Section 1071 of the Dodd-Frank Act, and its profound impact on the industry. Our discussions focused on several pressing issues:
- The Challenges of Section 1071 of the Dodd-Frank Act. Section 1071 brought crucial amendments to the Equal Credit Opportunity Act (ECOA), introducing extensive data collection requirements to the credit application process. While transparency and accountability are crucial, the compliance timeframe of 18 months poses a significant challenge, particularly for smaller financial institutions that handle numerous low-dollar transactions.
- CFPB’s $5 Million Threshold. The high threshold for small businesses effectively turns Section 1071 into a broad catch-all repository for nearly all commercial loans across the United States, which deviates from the original intent of the legislation.
- Advocacy for the SMALL LENDER Act (Supporting More Affordable Loans Through Lender Efficiency Act). Collectively ELFA members urged Congress to co-sponsor the SMALL LENDER Act. The Act aims to provide relief from the CFPB’s final rules under Section 1071 of Dodd-Frank in three critical ways:
- Extend The Compliance Period: Adjust the compliance date to three years, with an additional two-year grace period, as opposed to the current 18-month implementation period.
- Redefine The Definition of Small Business: Revise the small business criteria for data collection purposes to those with gross annual revenues of $1 million or less, instead of the existing $5 million threshold.
- Adjust Financial Institution Criteria: Define the criteria for financial institutions required to collect and report data to those originating at least 500 covered transactions annually, rather than the current 100.
Promoting A Fair And Efficient Equipment Finance Environment
Our goal is to foster a fair, efficient, and growth-oriented environment for the equipment finance industry. The ELFA and its members believe the SMALL LENDER Act embodies a balanced approach, ensuring necessary consumer and small business protections while alleviating regulatory burdens on lenders and small enterprises.
To learn more about the SMALL LENDER Act and its impact on the equipment finance and leasing industry, read my blog post “The Transformative Potential of the SMALL LENDER Act: A Game Changer for the Equipment Finance and Leasing Industry.”
Commitment To Leadership & Advocacy
At LTi, leadership, advocacy and commitment to collaborative partnership are core values that are ingrained in our culture. We refer to this as #TheLTiDifference. Our dedication to clients, vendor partners and our broader community remains unwavering. Participating in the 2024 Capitol Connections Convention was an example of #TheLTiDifference.
As we navigate these regulatory challenges, the commitment of our ELFA members to advocate for sensible policies is essential. Together, we can achieve a regulatory framework that supports industry growth and safeguards stakeholder interests.
We extend our gratitude to all participants with a special thanks to Andy Fishburn, Matthew Hart and the ELFA for their leadership in organizing this important event. We look forward to continuing to drive the conversation forward and championing the future of equipment finance together.
Join The Advocacy Effort
For more information about ELFA and Capitol Connections and how you can join the effort to advocate and make a difference in the equipment finance industry, click here.
Interested in reading more? Check out Randy Haug’s Blog:“Three Top 2023 Performers Poised for Continued Success Through 2025.“
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