Most recently, the Administration announced a small business lending initiative to provide low-cost capital to community banks that submit a plan to increase their small business lending and to Community Development Financial Institutions that serve the hardest-hit communities. A number of these small business lending initiatives are new, and their effects on small business lending cannot yet be measured.
Nonetheless, a number of programs have been established to assist small businesses and the regulatory agencies recently issued guidance that strongly encourages banks to meet the needs of creditworthy borrowers. We will closely monitor credit conditions to consider whether additional measures may be needed to ensure that the funding needs of qualified small businesses are met in the coming months.