A proposal by President Barack Obama that seeks to bolster small-business lending would have little effect in North Dakota and western Minnesota, area bankers say.
"It's a little hard to get excited about it," said Bruce Tellefson, president of State Bank of Hawley, Minn.
He and other area bankers say that while the plan might help in other areas of the country, banks in this region already have enough money to lend.
Obama's proposal would redirect $30 billion from TARP, the Troubled Asset Relief Fund, to help community banks increase lending to small businesses.
But a recent survey of North Dakota banks found that they're not short of money to lend, said Rick Clayburgh, president/chief executive officer of the state Bankers Association.
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"Our banks already are in good position to be able to handle small-business lending for their credit-worthy borrowers," he said.
Don Forsberg, executive vice president of the Independent Community Banks of North Dakota, doesn't think the plan would have much effect in the state.
"Most of our members are indicating to me they have money to lend to small businesses," he said.
Nationwide, the proposal could do considerable good, he said.
"In North Dakota, I don't know if it's going to make a lot of difference," he said.
Area bankers say they generally avoided the bad loans made by banks in much of the country, keeping banks here financially strong.
"From our perspective, we would not feel it's needed," said Allan Erickson, executive vice president and chief financial officer of Fargo-based Gate City Bank.
"We have ample resources to lend money," he said.
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