Woodstock Institute signed on to a coalition letter in support of the Close the ILC Loophole Act (HR 5912) introduced by Rep. Chuy García (IL-04). Industrial loan corporations (ILCs) operate under a special exemption in federal law that permits any type of organization—including a large technology company or commercial firm—to control a full-service FDIC-insured bank without being subject to the same oversight and prudential standards, or limitations on the mixing of banking and commerce, that Congress has established for the U.S. financial system. Furthermore, ILCs provide non-bank lenders an easy path to federal preemption of state interest rate caps, allowing them to make predatory loans. Closing this loophole is a critical consumer protection issue.