(CFA): If you had the opportunity to give President Obama advice on the credit crisis, given your background in commercial finance, what would you suggest?

John W. Kiefer, Chief Executive Officer of FCC, LLC D/B/A First Capital responded, "The economic stimulus plan is ignoring a very important part of the economy. Nonbank-owned finance companies are finding it harder to borrow money in the capital markets or through traditional commercial bank lines. Should funding to these companies dry up. it is estimated that over 4.5 million jobs could be at risk and over $2.5 trillion in GDP.

Nonbank-owned finance companies have filled the demand left out in the cold as banks have pulled back from lending to the small to mid-size businesses. It is estimated that these borrowers provide over 60% of job development. As goes their funding so go the jobs and economy.

There are several things the federal government can do:

• Expand the number of nonbank SBA licenses
• Provide direct guarantees to banks that make loans to this group of lenders
• Change SBA policy to allow SBA lenders to make loans to nonbank finance companies.
• Make direct loans to this group of lenders, well secured and at a profit for the treasury
• Make investments in the form of preferred stock

It is ironic that the group of lenders who have not practiced unsafe and unsound lending are likely to become casualties of this crisis while the bankrupt lenders who were a part of causing it are being saved."

About First Capital

First Capital (www.FirstCapital.com) is a leading commercial financial services firm providing prompt, professional and reliable working capital solutions and outsourcing, primarily for middle-market companies and institutions.  With over $1 billion in total committed lines, First Capital is one of the largest independent and fastest-growing commercial finance companies in the United States.  The firm focuses on asset-based lending, accounts receivable management, credit protection, international supply chain financing and servicing for clients in North America and Asia.  The firm also manages asset portfolios for clients and is an active issuer of receivables-backed securities.  Combining a unique blend of traditional and progressive banking methods, First Capital provides clients with customized support needed to grow and maintain their business.  Based out of Boca Raton, Florida, the firm has full-service offices in major cities including New York, Los Angeles, Oklahoma City and Atlanta as well as Asian subsidiaries in Hong Kong and Manila. 

###