“Small businesses are the backbone of North Carolina’s economy,” said Perdue. “It is critical that we get credit flowing back to small businesses to work our way out of this economic and financial crisis.”
In a letter to the N.C. Congressional Delegation, Gov. Perdue asked for federal government support for North Carolina’s efforts to increase lending to North Carolina small businesses. Specifically, the federal government should:
• Identify sources of capital, such as unspent TARP funds, that can be repurposed and deployed through banks specifically for small business lending.
• Extend the availability of 90% no fee SBA-backed small business loans, and ease the regulatory pressures applied to lenders to bring credit access back within reach of the many viable businesses that need it.
• Consider tax incentives for small businesses that create jobs as a result of federally-backed loans.
In recent weeks, Gov. Perdue has asked leaders from the Department of Commerce, the Economic Development Board, the N.C. Banking Commission, the N.C. Bankers Association, and the N.C. Small Business Technology Development Center to develop a plan to facilitate more lending to North Carolina small businesses.
That team met last week with Small Business Administration officials to discuss a state-federal partnership to increase the flow of credit to small businesses. However, to maximize the impact of these efforts the federal government must take steps to address barriers to credit.
In 2006, small businesses accounted for 98% of employers and 49% of private-sector employees in North Carolina.
Additionally, Gov. Perdue provided a list of proposals for a federal jobs package that was recently submitted to the White House. Several of those proposals were included in a bill recently passed by the U.S. House. The letter and list of proposals is attached.
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