March 6, 2009
NDC Offers Congress A Plan for Job Creation Through Community Lending
NDC President Bob Davenport was invited to testify at a March 4 meeting of the House Subcommittee on Financial Institutions and Consumer Credit in Washington. The hearing focused on the effect of TARP funds on consumer and business lending, and Bob’s statement described the recent experiences of NDC’s Grow America Fund, our small business lending arm. He told of the sharp increase in the number of businesses seeking credit from GAF as well as some of the changes that have occurred in GAF’s relationships with its banking investment partners due to the current crisis in our financial system.
He also offered a plan under which TARP or TALF funds could be directed into the network of community lending institutions around the nation — CDFI’s, LDC’s, CDC’s, SBLC’s and community banks — because these mostly mission-driven organizations are important and reliable resources for small businesses. These lenders face capital and liquidity challenges due to the larger financial system situation, and the plan proposed by NDC would both refresh their capital and reinforce their liquidity, allowing them to continue in their critical community lending role.