Question & Answer

Question: Is there a requirement for a fair lender statement in an advertisement for SBA loans?

Answer: SBA does not have advertising requirements for banks. There is no requirement that a bank state that it is a fair lender when it advertises that it makes SBA guaranteed loans.

SBA does, of course, expect honesty. Any bank advertising SBA loans should, in fact, offer SBA loans. In addition, SBA expects that any bank making SBA guaranteed loans would not discriminate.

Although there is no requirement to make a fair lender statement, it may be a good idea to do so. For example, if your bank has identified small business lending as an important component of its CRA program or has targeted minority owned businesses as a credit need, your advertisements should be designed to reach the audience with small business potential. That may involve special targeting of advertisements and fair lending messages. Your choices are open, but they should be designed to accomplish your purpose and effectively communicate your message. If the advertisements would be strengthened by including a fair lender statement, go ahead and include it.

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 6, 4/96