Looking The Gift Horse In The Mouth

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The New 30 Billion Community Bank/Small Business Initiative:  If you are like me, you shuddered last Wednesday night when you heard the President announce to joint session of Congress the desire for Congress to authorize and pass a new fund for community banks…some 30 billion dollars of repaid TARP to be made available to community banks under 10 billion in total assets for small business lending.  This week, the President laid out the specifics of the plan.

 

My initial skepticism centered on three central issues:

1.    Would the program look anything like the TARP of old and the onerous strings connected with acceptance and repayment?;

2.    Do community banks really need more liquidity at a time when small business lending demand is lackluster; and,

3.    What would be the public perception associated with accepting a government stimulus initiative, even one that is meant to benefit small business?

Read Looking The Gift Horse In The Mouth.