Unlimited FDIC Insurance for Business Accounts is Critical
In this week’s Washington Business Journal, I wrote an Op Ed piece urging Congress to extend the Transaction Account Guarantee programthat has the FDIC providing unlimited insurance to business noninterest bearing demand deposit accounts. This is critical for small businesses to continue to have such protection, whether they bank at a megabank or a community bank.
I have written about this before. This issue is time sensitive because the TAG program sunsets at year-end absent Congressional action.
This is not just a matter for community banks. This is important to every small business which is considering where to place funds among alternative investment vehicles. Knowing that its accounts are fully FDIC insured allows a business to choose to bank with whoever it is comfortable with, rather than be forced to choose between a “too big to fail” megabank and the local community bank with whom it has a relationship.
Accordingly, I urge all small businesses to write their Senators and Representatives and urge extension of TAG.