January 24, 2011
Nation's Building News

The Official Online Newspaper of NAHB

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Builders Urged to Register Credit Availability Problems on New FDIC Hotline and Website
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FDIC headquarters, Washington, D.C.

To help small business firms address their difficulties in obtaining credit, the Federal Deposit Insurance Corp. (FDIC) has announced the creation of a new hotline and website that enable small business owners — including builders — to register specific issues or problems they may be having with credit availability.

Ending the severe acquisition, development and construction (AD&C) credit crunch that has cut off the flow of credit for housing production remains NAHB’s top priority. This new development presents a unique opportunity for association members to weigh in directly with the FDIC to discuss any business constraints they are facing as a result of the scarcity of credit for housing.

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

The FDIC decided to provide the new resources after recently hosting a symposium to examine the credit problems that small businesses are facing.

Calling 1-855-334-2249 will patch NAHB members through to the FDIC’s hotline, where they can discuss their specific situation.

Callers should be aware that they will be talking to a live FDIC representative, so they should have all relevant information at hand. The hotline is operational Monday through Friday, 8:00 a.m.-8:00 p.m., Eastern Standard Time.

NAHB members can also fill out a business assistance form at www.fdic.gov/smallbusiness by clicking on the Business Assistance Form at the bottom of the page. This allows users to fill in information and provide details about lending or credit problems they are having with a specific bank or financial institution.

“Strong member participation is vital to raise greater awareness of the AD&C credit problems builders are facing and to find constructive solutions that will restore the flow of credit to our industry," said Nielsen. “So once again, I urge any NAHB members who are experiencing lending problems to weigh in with the FDIC today.”

"Association leaders have been doing everything they can to bring this critically important issue to the attention of the FDIC and other regulators," he added. "It's now time for the FDIC to hear directly from the individuals who are seeing their businesses suffer from today's severe shortage of housing credit."

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