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Citigroup Head of Small Business Banking Raj Seshadri on the bank’s effort to increase lending to small businesses.
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If you own a small business and you can't get a loan to help grow your business well you're not gonna hire anybody or create new jobs.
It's a vicious cycle but now some of the nation's biggest banks including Citigroup have taken the pledge to change all that by loaning billions of dollars to America's small business.
Joining us now -- say shot greet the head of small business banking at Citigroup I hope I didn't butchery in name too badly that it is anything about how to -- -- Jerry -- we're glad to have you here.
Now I wanna show folks how much you guys have pledged.
To lend to small business take a look at this 2011700000002012800000002013.
Some nine billion.
What's behind this -- you guys doing this.
You know -- very committed to small businesses I think court for the US economy -- important for the American economy.
I doubt -- of so this -- -- industry could be sticky at Citibank.
And it's a commitment to making sure that they'll be on -- he led to them be very actively lending to them and it's a commitment to show that -- be there for them.
But is even more money than normally you would be putting out there is that the way it's working -- it is a commitment to put the money out that the that the capital that -- -- each -- owners can use it and leverage it as they think about the business is going forward.
-- we have small business folks on here all the time.
And -- always complaining frankly about the level of commitment they get from bankers they say they're not getting the loans they're do is a matter of fact according to a National Federation of Independent Businesses survey.
Some 11% say loans are harder than ever to get another 90% say credit standards well they're just too tough out there.
How do you respond to that kind of criticism in the marketplace.
You know it it might have been to a couple of years ago at its peak this city back in which we -- And we have very actively lending today we rich nations of good tremendously up with foot is going be actively putting -- -- -- business owners.
We and believe that we should try and get to yes to -- many business that is as we can.
And debt would be contradict the second joke and we leverage all of the programs that they to try and help them out and -- -- fought the good relationship.
We back them for the sticky analysts at from I don't know why everybody's so their business -- clean up backing you want to create value for the so whatever helps them run their business more efficiency from a financial point of view we -- for the.
Our right to tell little bit more about what you're doing to get people in the door and then when they when they are there and they are applying for the -- have you changed your terms is there any.
Anything new anything different about what you're doing to get these people not satisfied -- from the loan they -- you know we have.
Very as systematic and thought through how the customer -- spend alienated much easier and simply.
For the customer to apply intensive what they need to do with the documentation.
A -- me get back to them we constantly looking at underwriting criteria to figure out how we can lend more to them.
I think this is a continuous improvement process and it's its ninety -- -- doing a lot intends a small business lending.
-- -- at the flip side of this for a moment when you have small business operators coming in your front -- today.
How are they different than they were say a year ago two years ago or they in better shape are they hiring more what do you -- at the bottom line of these companies.
The addicted V eight out of ten this is senators see that the act RP.
They'd be -- to face whatever the future bullets and -- A couple of years ago there were eight out of -- -- kind of concerned about that themselves and ready not right not of course -- consent about the environment in which they operate but I think many of them that's -- nine that this this is thought to their operating model.
Boxer -- go to market and in much better shape today.
I'm Dana you can seven see that in what BC to.
Individually you can see that in the city is that -- is relaxed year terms for loans at all from the heights.
The recession be changed what you're doing in any -- I think you know as -- lead did -- relaxed always makes me nervous -- we tried to -- yes there's many business and is this weekend and I think I'll get to -- yes I mean I'm obviously gonna wrap -- up the phone and asked for you you run the business to they just go to their local local Citibank paparazzi -- any small business and a -- compound to any of -- Citibank -- is we -- -- to send you to help you.
And in -- that the -- -- to come talk to us you know it's interesting because this business probably as much as any other out there that have that banks do.
Really goes to the bottom line of all of us because small businesses are so important in creating jobs and of course that's the thing that's really missing in that economy.
Do you feel like you're playing you and -- job or are playing a role in the economy everyday.
Absent it's it is a fascinating job that I have been in Tokyo -- business -- and jobs I would tell you that many of them I have focused on maintaining employment right now.
And to the extent they -- not thinking about hiring part time -- -- -- by the creativity.
They take you know -- the -- very seriously it's a responsibility.
-- their employees and debt you know it's it's nice to see that be a tip that they have been -- take that responsibility Russia pleasure meeting you thanks for your time today we appreciate it thank you very.
