” For the longer term, Federal Reserve Chairman Bernanke identified the need to reform the government role in housing finance: “Obviously, the biggest problem…will be the Fannie and Freddie reforms which…will be critical to reestablishing the soundness of the residential mortgage market. ” Ensuring Credit is Available to Creditworthy Borrowers Lenders’ willingness to supply credit to small businesses was another key topic. Federal Reserve Chairman Bernanke noted early signs of improving sentiment among small business lenders: “t’s certainly still a very tight situation. But I think things have stopped getting worse and are looking a little better. ” Banks naturally tightened their lending standards as a result of the recession. As Mr. Bell explained, “f you’re a bank, you almost lost your franchise… you’re a borrower and you almost lost your business…human nature is…to be a more careful lender and…a more careful borrower. ”
Regulators are working to ensure that lenders do not overreact and limit credit access to creditworthy borrowers. According to FDIC Chairman Bair, “I think maybe some banks also became a little more risk averse perhaps than they should have been. ” She added, “We’re encouraging banks. We
want them to…make safe and sound loans.
does reg z cover business loans
Secondly, what are the expenses that a company has and how frequently these payments have to be settled.
does fcra apply to business loans
While weak sales have dampened small business loan demand, Federal Reserve Chairman Bernanke explained that a strengthening economy will fuel a circle of recovery: “We see the economy strengthening,” Bernanke said. “And that means more sales…that will make these businesses stronger, make them more creditworthy and it will be a virtuous circle…More cash flow and also higher collateral values makes businesses more creditworthy, gives them more credit demand, allows them to expand, allows them to hire. ”Panelists acknowledged several existing initiatives that support small businesses. For example, recent legislation increased the lending capacity of SBA programs and created tax incentives for business investment. 3 With regard to the business environment, the level of legislative and regulatory uncertainty—frequently cited as an obstacle by small businesses—has been easing. For example, Mr.
