March 25, 2009
Despite the contracting credit markets and the decline in small business lending, NDC’s small business lending division, Grow America Fund (GAF), is busier than ever, speaking out about the need for increased measures to support small business lending and making loans to small businesses throughout the country. During the first quarter of the year, GAF closed small business loans in New York City, Seattle and Cuyahoga County with a diverse subset of businesses. On March 4, 2009, NDC President Bob Davenport testified before the House Subcommittee on Financial Institutions and Consumer Credit about the effects of TARP funds on small business and consumer lending. His testimony will be weighed in the Committee’s recommendations to Congress about how to improve the availability of credit for small businesses. On March 16, 2009 GAF President Pat Thomson spoke at the International Economic Development Council’s 2009 Federal Economic Development Forum on the ways that the federal government can work with the public and private sectors to ease the credit crunch onbusinesses and state and local governments.
During the first quarter of the year, GAF closed small business loans in New York City, Seattle and Cuyahoga County, OH with a diverse subset of businesses. Eagle Precision Products in Cuyahoga County is one of the successful small businesses GAF has provided credit to in the last six months. This precision metal stamping company primarily serves the second and third tier auto industry, and has continued to prosper despite the difficult economy. With a strong reputation for quality customer service, Eagle Precision has witnessed steady growth over the last three years that has increased its need for working capital. The company came to NDC to finance its new growth-related needs and to refinance a costly equipment loan that was depleting its cash reserves. Working in partnership with Cuyahoga County, NDC’s Grow America Fund was able to refinance Eagle Precision Products’ machinery and equipment loan, saving the company roughly $18,000 annually, and provide a working capital loan at significantly reduced interest rates with a longer than standard term that is facilitating additional growth.