LD-2 Disclosure Form

Lobbying Disclosure Act of 1995 (Section 5) - All Filers Are Required to Complete This Page

1. Registrant Name Organization/Lobbying Firm Self Employed Individual

Community Bankers Association of Illinois

2. Address

Address1

901 Community Drive

Address2

City

Springfield

State

Zip Code

62703-5184

Country

USA

3. Principal place of business (if different than line 2)

City

State

Zip Code

Country

4a. Contact Name		b. Telephone Number	c. E-mail
Mr.	David G. Schroeder	8479098341	davids@cbai.com

5. Senate ID#

400531588-12

7. Client Name	Self	Check if client is a state or local government or instrumentality
Community Bankers Association of Illinois

6. House ID#

411650000

LOBBYING ACTIVITY. Select as many codes as necessary to reflect the general issue areas in which the registrant engaged in lobbying on behalf of the client during the reporting period. Using a separate page for each code, provide information as requested. Add additional page(s) as needed.

CBAI 2021 Federal Policy Priorities -

Community Bank Response to the COVID-19 Pandemic

COVID-19 has focused community bank efforts on helping their individual and small business customers and their communities weather the virus crisis and assist in the recovery effort. This was a commitment above and beyond what was normally expected, but one which community bankers were happy to fulfill. Community banks stepped-up during the crisis despite the many challenges and frustrations they encountered. They should be commended for what they are doing, treated fairly and equally, encouraged to do more, and not penalized for successfully performing their essential function.

The Independent Community Bankers of Americas Legislative and Regulatory Agenda Contained in their Community Focus 2020: The Community Bank Agenda for Expanding Economic Opportunity

CBAI joins the Independent Community Bankers of America (ICBA) in supporting a more efficient system of regulation, unbiased laws governing the financial sector, a safer and more secure business environment, and more efficient agricultural policies to support the nations economic growth and development in every corner of the country.

Additional Meaningful Regulatory Relief for Community Banks

Community bankers seek additional regulatory relief including on several fronts (i.e., BSA reform, CTRs, and SARs) to permit them to better serve their customers and communities while proudly fulfilling their reasonable responsibility to identify and report illicit actors.

The Community Bank Position on Credit Unions and Their Expanded Powers

Credit unions have long-since strayed from their founding purpose of serving individuals of modest means and with a common bond. They blatantly abuse their competitive advantages and are virtually indistinguishable from tax-paying community banks. Credit union acquisitions of community banks is a recent and disturbing trend that negatively impacts all taxpayers. This escalation of credit unions abusing of their tax-exemption should prompt Congress to Wake Up and act - NOW. This abuse is an existential threat to community banks and the communities they serve.

The Community Bank Position on the Farm Credit System and its Expanded Powers

The Farm Credit System (FCS) has long-since strayed from its founding purposes, blatantly abusing its competitive advantages against community banks. The FCS is the only GSE that competes directly with community banks. This blatant and continuing discrimination against community banks must end and FCS competitive advantages must be reined-in, and the playing field leveled for community banks.

Closing the Industrial Loan Company (ILC) Regulatory Loophole

ILCs represent the unacceptable mixing of banking and commerce, because of the risks they pose to the financial system, our economy and American taxpayers. ILCs are the functional equivalent of banks and should be properly regulated. The loophole that excludes their holding companies from being supervised and regulated by the Federal Reserve must be closed.

The Federal Reserves Role in Payments System Improvement

A fast and secure payments system is the very foundation of financial services and economy and must be modernized. The payments system must not be monopolized by The Clearing House and its 25 large bank owners that endangered our financial system and the entire economy during the financial crisis. Community banks, small businesses and consumers must rely on the Federal Reserve to provide access to a safe and secure payments system. The Federal Reserve must be supported in its development of the FedNow Service to ensure that all participants have access to a real-time system on a fair and impartial basis.

Modernizing the Community Reinvestment Act (CRA)

The modernization of the CRA must enhance the ability of community banks to serve their communities and must not impose any additional regulatory burden. All financial service providers must be subject to the CRA to provide a complete picture of every financial institutions performance in serving their communities. A modernization of the CRA that does not encompass credit unions, Farm Credit System lenders and Fintechs (including the OCCs Special Purpose National Banks) will be a sham. All the banking regulators must agree on joint final rule to modernize the CRA.

Safe Harbor for Banking Cannabis-Related Businesses

Without taking a position on the legalization of cannabis, a safe harbor from federal sanctions for financial institutions that choose to serve legally compliant cannabis-related business in states where cannabis is legal is a matter of public safety. CBAI has expressed its support in Congress for the Secure and Fair Enforcement Banking Act which provides this legal safe harbor.

De Novo Community Bank Formation, the Dual Banking System and Charter Choice

Newly chartered (de novo) community banks are vitally important to maintaining a strong, growing, evolving and vibrant profession in the face of banking industry consolidation. Many new banks must be chartered each year to help maintain the vitality of the community banking profession.

The dual banking system, where chartering and supervision is divided between the federal government and the states is important and must be maintained. Community banks should be able to choose the banking charter that best fits their unique business model. A banking system with multi-agency (state and federal) regulators and charter choice provides the necessary checks and balances as well as improved rulemaking on complex issues.

Sound Principles for GSE Reform

The seemingly endless and ongoing period of government ownership and control of Fannie and Freddie must come to an end. GSE reform remains critically important to the future of the housing market and the U.S. economy. Community banks depend on the GSE for direct access to the secondary market. The GSEs must provide a steady and reliable source of funding for home mortgage lending for lenders of all sizes and through all economic cycles. This is particularly critical to maintaining liquidity when the markets are experiencing financial stress.

The Federal Home Loan Banks

Most community banks are members and shareholders of their regional Federal Home Loan Bank (FHLB). The FHLBs provide short-term liquidity, long-term funding, mortgage-related products, and other financial services in order to help their members provide affordable credit to the local communities they serve. The regional structure, special functions, and unique purpose of the FHLBs must be recognized and maintained by the Federal Housing Finance Agency (FHFA). As the Administration and Congress consider reforming the housing finance system, care must be taken not to harm the FHLBs. They must remain healthy, stable, and reliable sources of funding for their members.

Agriculture and Rural America

A vibrant rural economy is vital to Americas prosperity. The multi-year Farm Bill provided a strong safety net for farmers and ranchers including adequate price-protection programs and enhanced USDA-guaranteed farm and business loan programs. These programs must be protected from cuts or any adverse changes that would discourage farmer and rancher participation or undermine private-sector delivery.

Enhanced Data, Cyber and Payment Card Security (Data Security)

Enhanced security standards should be enforced through a tiered system where the more restrictive rules and are imposed on the largest and most critical members of the financial system and economy where their lapses pose the greatest threat to the largest number of consumers. Core data security principals in standards enacted by legislation and regulations must include the complete cost of data breaches being borne by that party that caused the breach; all participants should be subject to verifiable Gramm-Leach-Bliley Act-like data security standards; and any new data security standard proposals should ensure that community banks are not overburdened with redundant standards.

Consumer Financial Protection Bureau Reform and Meaningful Exemptions for Community Banks

Regulations promulgated by the CFPB must provide community banks with the flexibility to meet the needs of its customers and they must not be burdened with additional and unnecessary regulatory requirements that would prevent them from serving their customers and communities. A one-size-fits-all approach to CFPB regulations harms the successful community bank business model.

In reforming the CFPB, the single Director governance should be replaced by a five-member board or commission; a broader definition of firms that grant credit should be subject to the CFPB rules, they should be robustly supervised and examined; and the focus of any enhanced regulation of financial products should be on the mega banks and financial firms, the unregulated shadow financial industry and emerging Fintech companies.

The CFPB has the statutory authority under the Dodd-Frank Act to exempt any class of providers [community banks] or any products or services from the rules it writes, but to-date the Bureau has been far too reticent to do so. The effective use of this authority will ensure community banks continue to be a healthy alternative to large banks and non-banks for consumers seeking to use responsible financial service providers.

The Community Bank Positions on Emerging Issues

Fintechs and Special Purpose Fintech National Bank (SPNBs) - OCC

Fintechs, including the OCCs SPNBs, raise many concerns. They cannot have the advantages of a bank charter with limited requirements, regulations, and liability.

Postal Banking - Congress

Postal banking is misguided and any entry of the USPS (Postal Service) into banking services is a significant government-sponsored, competitive threat to the viability of tax-paying community banks.

Current Expected Credit Loss Model (CECL) - FASB

Community bankers and Congress must continue to be vigilant to assure the CECL Model implementation provides a clear, practical, and easy-to-use methodologies for calculating expected losses which can be seamlessly incorporated into existing processes for community banks.

Customer Data Sharing - CFPB

Community banks are financially sound and take great care in protecting consumer privacy. Non-bank entities must be held responsible for ensuring the safety of the customer information they are accessing and be able to satisfy the liability for any financial harm which they cause community banks and their consumers.

Small Business Data Collection - CFPB

Small business lending data clearly suggests fair lending is not a problem at community banks as they treat their customers honestly and fairly. The regulatory burden of the collection and reporting requirements fall disproportionately hard on community banks, and Section 1071 should either be repealed, or community banks should be provided with a meaningful exception.

Reporting Beneficial Ownership Information - FinCEN

Provisions in the NDAA in the 116th Congress shifted the burden of collecting and reporting beneficial ownership to FinCEN. This transfer must be accomplished expeditiously.

Financial Transaction Tax - Congress

Tax laws should encourage and promote robust economic activity and a thriving community banking sector, not impose new bank-specific fees, punitive new levies, transaction taxes, limitations on the deductibility of expenses, revenue offsets or pay-fors that target the banking industry. Rather, there should be parity among all financial service providers; there should be tax incentives for community banks serving low- and moderate-income individuals, small businesses, and small farms; and there should be a tax credit equivalent to the cost of community bank compliance with BSA compliance.

Finally Address the Risks of Too-Big-To-Fail Banks and Financial Firms to Protect Our Financial System, the Economy, and American Taxpayers from Future Bailouts

The financial crisis, taxpayer bail-outs, and subsequent recession was caused by the misconduct of the nations largest banks and financial firms. These megabanks have proven, at great cost to American taxpayers, that they cannot be effectively managed, supervised or disciplined. They are clearly too-big-to-change, too-big-to-fail and must be downsized.

(House and Senate)

Legislation and Regulation -

Potential proposal in the Build Back Better Act (BBB) (commonly known as the IRS Reporting Plan) to force banks (and other financial service providers) to collect and report new and detailed information to the Internal Revenue Service (IRS) on consumer and business account activity (House and Senate)

Proposal in legislation known as Build Back Better Act (BBB) to allocate funds to permit the U.S. Small Business Administration to directly originate and disburse SBA 7(a) loans (House and Senate)

H.R. 5912 - Close the ILC Loophole Act (all sections) which is legislation to reform the regulation of industrial loan companies and their parent companies (House)

H.R. 1977 - Enhancing Credit Opportunities in Rural America Act of 2021 (all sections) which is legislation to exempt from the calculation of interest received by a lender from real estate loans secured by agricultural real estate that is used in the production of agricultural products or from loans secured by a single-family principal residence in rural areas (House)

H.R. 6037 (all sections) which is legislation to prohibit the Administrator of the Small Business Administration from directly making loans under the 7(a) loan program (House and Senate)

Letters -

Comment Letter to the Farm Credit Administration regarding: Request for Input on Strategic Plan (Farm Credit Administration)

Comment Letter to the Federal Reserve, OCC and the FDIC regarding: Proposed Interagency Guidance on Third-Party Relationships - Risk Management (Federal Reserve Docket No. OP-1752, FDIC RIN 3064-ZA26, and OCC Docket No. OCC-2021-0011) (Federal Reserve, OCC and FDIC)

Action Alerts -

Action Alert regarding proposal in legislation known as Build Back Better Acct (BBB) to allocate funds to permit the U.S. Small Business Administration to directly originate and disburse SBA 7(a) loans (House and Senate)

Miscellaneous -

Webinar on credit unions issues including reigning-in the expansionist agenda of the largest credit unions and tax-exempt credit unions buying taxpaying community banks (House)

Professor Saule Omarova nomination to be Comptroller of the Currency (OCC) (Senate)

U.S. HOUSE OF REPRESENTATIVES, U.S. SENATE, Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Farm Credit Administration

19. Interest of each foreign entity in the specific issues listed on line 16 above Check if None

U.S. HOUSE OF REPRESENTATIVES, U.S. SENATE, Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Farm Credit Administration

19. Interest of each foreign entity in the specific issues listed on line 16 above Check if None

Information Update Page - Complete ONLY where registration information has changed.

23. Name of each previously reported individual who is no longer expected to act as a lobbyist for the client

26. Name of each previously reported organization that is no longer affiliated with the registrant or client

28. Name of each previously reported foreign entity that no longer owns, or controls, or is affiliated with the registrant, client or affiliated organization

29. Have any of the lobbyists listed on this report been convicted in a Federal or State Court of an offense involving bribery, extortion, embezzlement, an illegal kickback, tax evasion, fraud, a conflict of interest, making a false statement, perjury, or money laundering?
No Yes

First Name	Last Name	Suffix	Covered Official Position (if applicable)	New
David	Schroeder

First Name	Last Name	Suffix	Covered Official Position (if applicable)	New
David	Schroeder

First Name	Last Name	Suffix	Covered Official Position (if applicable)	New
David	Schroeder

First Name	Last Name	Suffix	Covered Official Position (if applicable)	New
David	Schroeder

First Name	Last Name	Suffix	Covered Official Position (if applicable)	New
David	Schroeder