On March 4, 2009, NDC President Bob Davenport testified before the House Financial Services Subcommittee onFinancial Institutions and Consumer Credit about the effects of the economic downturn on small business lending, particularly the drastic reduction in small business credit from traditional bank lenders. Noting that economic recovery cannot occur until small businesses have the capital and credit they need, Davenport made a number of recommendations that would address this problem.
In a meeting later that spring with staff of the President’s National Economic Council, Davenport made similar recommendations.
On Wednesday October 21, President Obama announced a sweeping initiative to improve access to credit for small businesses, and we are pleased to note that NDC’s key recommendations are incorporated into the President’s program.
Two of the most important are: providing low-cost capital to Community Development Financial Institutions and increasing the lending limit on SBA’s 7A loans from $2 million to $5 million.
For more of Davenport’s recommendations and the President’s program, please read the Testimony of Bob Davenport before the Housing Financial Services Subcommittee on Financial Institutions and Consumer Creditand President Obama’s Announcement of New Efforts to Improve Access to Credit for Small Businesses.