Square Capital has withdrawn its application for an industrial loan company charter from the FDIC, but the company said it plans to refile its application. Representatives of the small-business lending subsidiary of San Francisco-based payments processor Square, Inc., indicated in media statements that the decision was a "procedural step in the review process that will allow us to amend and strengthen some areas of our FDIC insurance application," adding that a separate application filed with the Utah Department of Financial Institutions remains active. Square submitted its application to the FDIC last September. Recently sworn-in FDIC Chair Jelena McWilliams has stated that she would work to ensure that the FDIC – which has not issued an ILC charter since 2008 – would act "swiftly" when considering such license applications. But the ILC charters, which allow companies to have insured deposits without having to follow Bank Holding Company Act requirements, are controversial within the community banks sector, which argues that they blur the line between commerce and banking. The Independent Community Bankers of America sent a letter to the FDIC's San Francisco office last October opposing Square's application and calling for a two-year moratorium on future ILC deposit insurance applications.