CFA Issues Statement to Fed’s Small Business Lending Conference

The Commercial Finance Association (CFA) issued the following statement to the Federal Reserve small business lending conference in regards to the importance of issuing funds to independent commercial finance companies:

“The Federal Reserve conference, [held on Monday, July 12] about increasing lending to small business is yet another example of political theater. Once again, our nation’s lawmakers have gathered to share vague ideas, point fingers and simply agree that the small business credit crunch continues.

“Disappointingly, no tangible solutions are being offered. The Commercial Finance Association continues to believe that providing support to independent commercial finance companies, a crucial source of capital for small businesses, is absolutely imperative. Independent commercial finance companies extended hundreds of billions of dollars to U.S. small businesses in 2009. Additionally, more than half of these lenders increased their credit commitments in 2009, during a time of severe economic distress, thereby enabling many U.S. businesses to survive. Our elected officials and our nation’s banks should remain committed to extending credit to independent finance companies. Doing so will set in motion a sequence of events that will allow these lenders in turn to provide additional funds to small businesses, allowing them to add jobs and make meaningful investments in their operations. This is a tangible, practical and needed step that will help fuel real economic recovery in America.”

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