Rep. Clarke Calls for a Renewed Effort to Provide Lending for Small Businesses
Today, the Congressional Oversight Panel, responsible for monitoring developments related to stabilizing our financial system released a report entitled, “The Small Business Credit Crunch and the Impact of the TARP.” The report concluded that “Unfortunately, small business credit remains severely constricted.”
“The findings in today’s Congressional Oversight Panel report are troubling to say the least. I have been pushing for more resources for increased small business lending-especially for those in our hardest hit and underserved areas- for some time,” stated Rep. Yvette D. Clarke.
The report also indicated that, “Data from the Federal Reserve shows that lending plummeted during the 2008 financial crisis and remained sharply restricted throughout 2009… Some borrowers looked to community banks to pick up the slack, but smaller banks remain strained by their exposure to commercial real estate and other liabilities. Unable to find credit, many small businesses have had to shut their doors, and some of the survivors are still struggling to find adequate financing.”
Congresswoman Clarke has been advocating for more solutions to the small business lending crisis since the advent of the recent economic downturn.
“It is clear now more than ever that we should have all options on the table to address this critical issue. Small businesses create most of the new jobs in our economy.” added Rep. Clarke.
“This small business lending issue deserves more focus and I will continue to fight to help create a more favorable environment so that small firms in the 11th District can borrow in order to grow their businesses and create sorely needed jobs. I call for a renewed effort by lawmakers, financial institutions, and small business stakeholders to come up with more solutions to the small business lending crisis,” concluded Congresswoman Yvette D. Clarke.
For more information on “The Small Business Credit Crunch and the Impact of the TARP” report, visit: http://cop.senate.gov/