Area bankers attend Washington, D.C., small business forum
Two local bankers that attended a small business financial forum Nov. 18 in Washington, D.C., say the meeting was key to emphasizing the large role small business plays in any continued economic recovery.
The event was attended by several lenders, business advocates and small business owners, as well as Treasury Secretary Timothy Geithner and SBA Administrator Karen Mills, is part of an Obama administration effort to grow small businesses, create new jobs and contribute to the economic recovery.
Dallas-based Greg Clarkson, executive vice president and SBA division manager for BBVA Compass, said officials at the meeting, sponsored by the Treasury Department and the Small Business Administration, recognized the importance of small business to the recovery.
“They recognized that small business is a driving force of the economy and cannot be overlooked in being able pull the nation out of the recession we’re in,” he said. “If you’re going to have issues with job creation and consumer spending and the ultimate health of the economy, small business is going to be key.”
Also at the meeting was Cynthia L. Blankenship, vice chairman and COO of Bank of the West in Grapevine, who is also immediate past chairman of the Independent Community Bankers of America.
“America’s small business sector is more important than ever and is a critical component of our country’s economic recovery,” Blankenship said, in a press release. “ICBA appreciates Treasury and the SBA for recognizing that our nation’s more than 8,000 community banks are lending and continue to serve the needs of small businesses within their communities, especially during these challenging economic times.”
At the forum, Geithner called on banks to “get back to the business of lending, helping companies raise capital and investing in the promise of American innovation.”
Clarkson, noting that BBVA Compass has been increasing lending to small business, said banks have to use a different methodology in evaluating loans to small business since the recession began.
“The recession has caused a significant number of negative trends to appear for small businesses and until that trend reverses itself it will be difficult for lenders to apply their historical method of loaning money to these small business,” he said. “So you have to be forward thinking and look at projects and evaluate small businesses on a different methodology and on a different process than in the past.”
The ICBA has asked Congress to support several small business initiatives, such as extending SBA fee reductions and higher guarantee levels through 2011 and increasing the SBA 7(a) loan limit from $2 million to $3 million to $50 million with higher guarantee amounts.
President Obama called for the forum last month when he unveiled a new plan to provide low-cost capital to community banks so they can increase lending to small businesses.
rfrancis@bizpress.net
