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ICYMI - VIDEO: Small Business Owner & Banking Official Disagree With The President: "Federal Regulators Are Impacting Access To Capital"
Small Business Owner & Banking Official Disagree With The President: "Federal Regulators Are Impacting Access To Capital"
"FDIC regulators are inconsistently applying regulations throughout the banking community"
CLICK HERE to view the video of the question and answer.
Earlier today, the House Small Business Committee held a full committee hearing entitled, "Access to Capital: Can Small Businesses Access The Credit Necessary To Grow and Create Jobs?" During the hearing, Rep. Allen West asked the panel about whether they agreed with President Obama’s claim that the federal government didn’t have an effect on small business access to capital. The panel communicated the sentiment of many small business owners: that government lending regulations have been very inconsistent and harmful to small businesses.
Rep. Allen West (R-FL): “We just had a very interesting morning. We went over and met with President Obama, and one of the interesting topics we brought up is what we are discussing here today… lending - especially the regulatory burdens that we have placed upon our small businesses. One of the things that the President said was that these are independent regulators dealing with our small businesses and the government really doesn’t have any effect upon them. So, what I’d like to know, is that really the case? …or have you seen an increase in gov’t regulations coming down that are restraining or restricting the lending practices for our small banks?”
Ms. Lynn Ozer, Executive Vice President, Susquehanna Bank, Pottstown, PA answer: “What we found is that the FDIC regulators are inconsistently applying regulations throughout the banking community. That is what has been reported to the trade association.”
Mr. William Hall, CFE, CEO, William G. Hall & Co., Fort Worth, TX answer: “Mr. West, I think the issue, from a franchise perspective.. we are hearing that our borrowers are being inconsistently treated in some way... or that the bankers are being inconsistently treated. I have some banking interests myself and I do know it is very difficult for the individual banks to know what to do. They’re sort of just like we are in our business. It’s very difficult times for small banks. We hear in the franchising side that there are significant restrictions on credit based on the inconsistency of the regulators. I’m not trying to pick on FDIC or anybody else, we’re just trying to find a solution to the problem.”