ABC and the American Institute of Architects (AIA) on Nov. 16 joined together to express their support for a bill in the U.S. House of Representatives that would improve private lending within the construction industry and help get projects moving.

In addition, AIA is addressing the growing number of construction projects that have stalled due to lack of financing by creating a new online database that will help construction project stakeholders connect with investors interested in lending to stalled projects.

According to an AIA study released Nov. 7, the number of construction projects stalled due to financing problems has almost doubled since 2008. In addition, a study by the George Mason University economist Stephen J. Fuller showed that every $1 million in new construction spending supports 28.5 full-time, year-round-equivalent jobs.

In a letter sent to a House subcommittee, ABC and AIA called attention to the fact that many construction firms have viable, low-risk projects and/or contracts that simply need funding in order for work to commence. The groups commended the subcommittee for advancing the bill, known as the Common Sense Economic Recovery Act (H.R. 1723), which would clarify examination rules and allow certain performing loans to be treated as accrual loans.

“At this time of economic challenges, the Common Sense Economic Recovery Act would help to prevent inaccurate loan classifications and provide community banks with the appropriate flexibility to work with their local customers,” the letter stated. “ABC and AIA strongly support the Common Sense Economic Recovery Act and urge immediate passage.”

To learn more about AIA’s online database, visit www.aia.org/stalledprojects.