Can FDIC Hotline give the little guy better access to credit?

Scarcity of credit for housing is a problem.

I’m an affiliate member of the Toledo Home Builders Association and do my best to keep tabs on what’s happening in the housing industry. I received a message from Bob Nielsen, 2011 NAHB Chairman of the Board (National Association of Home Builders) regarding a number to call to help address difficulties in obtaining financing for small business owners, particularly builders and developers. I’m forwarding that information in this post.

Home builders and developers are struggling with getting the credit they need to acquire, develop and construct property.  Them being denied the credit they need and deserve to do their jobs threatens to derail the fragile housing recovery now underway.

A conference last week in Arlington brought these issues to light. Now the Federal Deposit Insurance Corporation (FDIC) has created a hotline and website allowing small business owners to make direct inquiries and register their specific issues or problems they may have concerning credit availability.

According to the message…

“Any home builder, developer or associate who is unable to obtain financing, is having a hard time with an outstanding AD&C (Acquisition, Development & Construction) loan or feels that they have been treated unfairly by their lending institution should alert the FDIC either through the hotline or their website.”

Calling 866-924-NAHB (866-924-6242) will patch you through to the FDIC’s hotline, where you can discuss your specific situation if you choose not to fill out a business assistance form on the FDIC website. Be aware that you will be talking to a live FDIC representative, so have your information at hand. The hotline is operational Monday through Friday, 8 a.m. to 8 p.m., Eastern Standard Time.

To provide more details, the FDIC has created a dedicated website for small businesses atwww.fdic.gov/smallbusiness. Go to the website and then click on the Business Assistance Form at the bottom of the page. This will allow you to fill in information and provide details about lending or credit problems you are having with a specific bank or financial institution. It is the hope of the NAHB that the FDIC will follow through and respond to any inquiries it receives.

Let’s hope it’s a step in the right direction.