From: Katie
Howard [mailto:khoward@lcrdc.org]
Sent: Friday, September 17, 2004 9:59 AM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50
Hello:
I work with eight
counties in Southwest Georgia, six of which are some of the poorest
counties
in Georgia. The funds provided through
the Community Reinvestment Act have been part of the success of the
Housing Rehabilitation Program undertaken by our agency in partnership
with local governments. While many of the individual consumers may
have been ‘undesirable or unbankable’ under standard
banking practices, the Community Reinvestment Act requirements induced
our local bankers to participate. Without the local banks participation,
these individuals would continue to remain in substandard housing.
The Community Reinvestment Act also helps with Small Business Loans
for new or existing businesses. Many of our small business owners
operate on a tight margin with very little profit. Yet they still
need access to the capital provided by banks. Without the Community
Reinvestment Act I fear that more loans to small businesses will
be denied. These loans will be denied either because they are marginal
or just not big enough to be profitable for a bank.
I oppose the FDIC's proposal to allow banks with assets above $250
million to be examined as small banks under the Community Reinvestment
Act. This policy would reduce lending, investments and services in
low-income communities.
Katie Howard
Lower Chattahoochee Regional Development Center
P. O. Box 1908
Columbus, GA
