WASHINGTON — Witnesses at a House Small Business Committee hearing Wednesday told lawmakers that a harsh regulatory environment continues to restrict access to credit for small businesses.
"What we found is that the FDIC regulators are inconsistently applying regulations throughout the banking community," said Lynn Ozer, the executive vice president of Susquehanna Bank in Pottstown, Pa., testifying on behalf of the National Association of Government Guaranteed Lenders. "That is what has been reported to the trade association."
Ozer was responding to a question from Rep. Allen West, R-Fla., who said that President Obama assured Republicans in a meeting at the White House that morning that the federal government doesn't have any effect on the ability of banks to lend.
William Hall, a member of the board of the International Franchise Association, who owns several Dairy Queen franchises in Texas, said the association has also heard that franchisees are having a difficult time obtaining loans.
"We hear in the franchising side that there are significant restrictions on credit based on the inconsistency of the regulators," Hall said. "I'm not trying to pick on FDIC or anybody else, we're just trying to find a solution to the problem."
