NSBA Participates in Administration Lending Forum

Nov 19, 2009

NSBA President Todd McCracken and three NSBA Trustees, Marilyn Landis, Scott Hauge and David Ickert, participated in a high-level conference yesterday held by the administration and led by Treasury Secretary Timothy Geithner and SBA Administrator Karen Mills. The focus of the conference: get more credit in the hands of America’s small-business owners.

Also in attendance at the conference were representatives of some of the largest U.S. banks and various independent community banks. At the outset, Geithner placed a certain level of culpability upon the larger banks for the credit crunch, and stated that they have a “substantial obligation to help our communities get back on their feet.”

Many of the representatives in attendance cited the jobless recovery as a clear indication that something’s got to change in order for small businesses to step into their historical role of creating jobs and driving the economy out of a recession. Geithner and Mills, both of whom were active participants—and primarily listeners—throughout the conference, agreed with the concerns of small-business representatives that many banks have been hesitant to utilize TARP programs aimed at small businesses because of some of the strings attached to TARP funds, namely the executive compensation.

Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair, who also participated in the conference, acknowledged the important role FDIC will play ensuring credit availability for small businesses, and said that her regulators will do what they can to help borrowers cope with the myriad problems created by decreased property values.

Upon conclusion of the conference, NSBA leadership expressed optimism about the conference and its likely outcomes.

“This forum on small business financing was a refreshing opportunity to get the credit barriers faced by small companies on the table, but more importantly, to create a high-level dialogue among all parties about specific solutions,” stated Todd McCracken. “The economic importance of resolving these issues was underscored by the active and candid participation of Secretary Geithner and Administrator Mills for the entirety of the day-long meeting.  We hope that the Administration and Congress can now move with all due haste to implement and series of proposals to improve the small business lending environment and thereby unleash the full economic potential of the nation’s small business community.”

NSBA has been leading the charge for increased access to affordable capital for U.S. small businesses. NSBA’s representatives again urged the administration to act now to address some of the biggest hurdles small businesses face in order to ensure a more rapid, sustainable economic recovery that includes job creation.

Please click here for more details on NSBA’s capital proposals.