Obama to Seek Small-Biz Help from Community Bankers

President Barack ObamaPresident Barack Obama will meet Tuesday with community bankers who are vital to extending more credit to small businesses —  a week after he had a similar White House meeting with the CEOs of the top banking institutions.
Rescuing more homeowners out of foreclosure will also be discussed.
This month, the Federal Deposit Insurance Corp. found that only a quarter of 1,300 community banks surveyed directly marketed their services to individuals who are under-served or not served at all by banking services in their community.
The FDIC’s study went beyond the FDIC’s estimates: 73 percent of banks are aware that significant “unbanked and/or underbanked populations” are in their market areas, but less than 18 percent of banks identify expanding services to this sector as a priority in their business strategy.
In his meeting with top banking chiefs Dec. 15, Obama said he told the executives that they need to find more ways to “help creditworthy small and medium-size businesses get the loans that they need to open their doors, grow their operations, and create new jobs.”
Obama will reiterate the same in Tuesday’s meeting. “The president will reiterate to attendees that we all have a stake in getting the economy back on track,” a White House spokesman said.
Obama will also remind the bankers of recent initiatives launched by his administration to provide capital to small and community banks, which are important sources of credit for small businesses. 
U.S. Treasury Secretary Timothy Geithner also said that officials are refocusing funds now available through its original bailout program, the Troubled Asset Relief Program (TARP), to help small businesses caught up in still tightening credit standards. Banks are increasing conserving capital as a hedge against future losses, and that is contributing to diminished credit access to small businesses.

3 thoughts on “Obama to Seek Small-Biz Help from Community Bankers

  • December 19, 2009 at 9:31 pm

    OK, fine. Lend all the money to small businesses, let us hire people and buy equipment. So then what? Obama and the Dems tax the people who would buy our products and services, so the money they would spend with us is sent to the government to be redistributed to people who do not contribute to society. Entitlements crush small businesses, and the Democrats need for this to happen in order to remain in power. So to anyone who receives government money – my money – it would be a good thing if you and everyone like you just dissapeared.

  • December 19, 2009 at 9:49 pm

    The FDIC raised their charges to small community banks by over 400% this year. The Feds bailed out the big banks but let the small community banks fund their own insurance. Now the Fed’s desire more community loans when the small banks have less money. Go figure that one!

  • December 20, 2009 at 12:31 am

    Why doesn’t Obamabush talk about SBA..A government loan program that allows small business to borrow for their business…Problem..in order to qualify, you must have collateral…your house is the only acceptable collateral…which just about eliminates all aplicants…question..DID AIG EXECTS PUT UP THIER HOMES AS COLLATERAL,,DID GM AND CHRYSLER PUT UP THEIR HOMES FOR CALATERAL…NOT THAT I HEARD….AIG FIRST BAIL OUT…tax payers money went to..$16.5 billion to SOCIETE..$14 billion to GOLDMAN SACHS..$8.5 billion to DEUTCHE BAANK…$6.2 billion to MERRYL LYNCH…$4.2 billion to CALYON BANK…$1.8 billion to UBS…$1.6 billion to BARCLAYS…$1.4 billion to BANK OF MONTREAL..Thank you mr president, demos, and repubs for your generosity to other banks

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