AIA, The Angle, July 30, 2009 -
Since the economic crisis exploded onto the front page last fall, the biggest issue facing policymakers has been ensuring that credit is available for businesses, homeowners, and others looking for capital. The Troubled Assets Relief Program (TARP), created by Congress in late 2008 to buy up so-called “toxic assets,” was quickly re-oriented toward injecting liquidity into financial institutions so they would lend again.
Now, nine months later, many banks are healthier, and some are even repaying back their TARP money – but are they lending again?
According to last March’s Architecture Billings Index survey, eight in 10 design firms reported that credit availability was more restrictive in the past. The result is that projects on the board are being stalled, delayed, or outright canceled.
The AIA is looking at proposals to bring to the Treasury Department, the Federal Reserve, and Congress to free up capital for large projects, recognizing that every $1 million spent on design and construction creates 28.5 full time jobs.
We want to hear from you: Have your projects been sidelined because your clients can’t access capital? What kinds of projects and how large? How long have they been delayed? And what is the impact on your bottom line? Tell us at The Angle blog.