AIA Urges Senate to Pass Legislation on Credit Crunch
The AIA submitted its statement to the House Financial Services Committee ahead of its hearing that will examine the alternatives available to promoting liquidity in the commercial real estate markets
(7/30/2010)
The American Institute of Architects recently called on Congress to address the persistent lack of credit that has exacerbated the economic crisis and disproportionately affected the design and construction industry.
“The design and construction sector in which architects compete has seen employment drop by 25% since the recession began in 2007,” said Paul Mendelsohn, AIA vice-president, Government and Community Relations. “The AIA Architecture Billings Index has remained in a negative state for nearly 2 years.
“The industry continues to be affected by an extremely risk-averse attitude on the part of lending institutions,” Mendelsohn said. “This is especially true for large construction projects.”
The AIA submitted its statement to the House Financial Services Committee ahead of its hearing that will examine the alternatives available to promoting liquidity in the commercial real estate markets, and as the Senate continued debating small business relief legislation.
The AIA reiterated its support for the administration’s proposal to create a $30 billion fund to community banks. Such a fund will help architecture firms that need lines of credit to support day-to-day activities in between projects. It will also be available for clients who are having a hard time financing building projects.
“This bill has been held up by partisan wrangling in the Senate,” said Mendelsohn. “But the lack of access to credit is not a partisan issue. It is affecting blue-state and red-state entrepreneurs alike.”
