Lending To Increase In 2011, According To Fed And FDIC Chairs
Written by Ken Gaebler
The federal government is hopeful that lending to small businesses will increase in 2011, but cites the need for commercial lenders to step up to the plate.
Recent business news for entrepreneurs has included reports on increasing employment and manufacturing, potentially influencing some hopeful remarks from top Obama administration officials.
On Thursday, at a forum on small business lending hosted by the Federal Deposit Insurance Corporation, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila Bair voiced their belief that small business lending will increase in 2011.
"The more we can do to get the economy going again, the more we're going to help small businesses and banks' lending to small businesses," Bair said.
However, the government can't do everything, the pair emphasized - banks will need to step up to the plate as well.
Bernanke, especially, emphasized that banks need to move away from an over reliance on the amount of collateral a borrower offers, which has been increasingly harder to produce, due to decreasing real estate values.
The FDIC also announced a new toll-free hotline that small businesses can call to reach FDIC officials or register complaints or concerns regarding lending practices.
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