“Failure to implement a major bank lending program calls for more direct action”
Washington, DC – At a hearing to examine the Small Business Jobs Act of 2010, U.S. Senator Ben Cardin (D-MD), urged Treasury Secretary Timothy Geithner to reconsider expanding direct lending programs for small businesses since the programs the filter funding through banks do not seem to be working.
“I am disappointed that the Small Business Lending Fund (SBLF) has only given out $4 billion of the $30 billion allocated to it by Congress. Public reports have been confirmed to me by many community bankers in Maryland that the Treasury Department and the Federal Reserve were too slow to implement this program, and as a result most of the money was not spent. However, my disappointment is exceeded exponentially by the frustration of qualified small businesses in Maryland and across the country that desperately want to expand their business but cannot get the capital required. Small businesses have always been the driving force behind job creation during troubled economic times and this point in history should be no different, if only more small businesses could get a simple financial boost to get them moving in the right direction. Therefore, I continue to implore Secretary Geithner to work with the Small Business Administration to expand direct lending to credit-worthy small businesses that will inherently spur innovation and help generate the job growth our nation needs greatly.”