When making the announcement Bush pointed to Preston's management of the SBA's loan guarantee programs, which is "similar in structure to those run by the Federal Housing Administration." Preston streamlined the agency's efforts to disburse loans to small businesses and homeowners devastated by Hurricane Katrina. "Within months of Steve's reforms, the backlog of loans fell 80% and response times improved by 90%," Bush said. "Today more than $6 billion in SBA loans are helping more than 160,000 Gulf Coast families rebuild their homes, their businesses and their lives."
Preston indicated his experience with inner-city small businesses as another reason for him to assume the helm at HUD. "So I certainly hope to bring that spirit to the Department of Housing and Urban Development," he said during Bush's announcement of his nomination. Prior to SBA, Preston was executive vice president of Strategic Services at the ServiceMaster Co. and senior vice president and treasurer of First Data Corp.
Normally an uncontroversial agency, HUD has been in the public's and Congress' spotlight since the start of the subprime crisis. That, coupled with the fact that it is an election year, makes it difficult to predict with certainty the fate of Preston's nomination.
Early indications from both the Democrats and the real estate industry, though, suggest Preston may indeed be the next HUD Secretary. Sen. John Kerry [D-MA], chairman of the Committee on Small Business and Entrepreneurship, says he will be sorry to see Preston leave his current position. "Mr. Preston inherited an agency in disarray and he's worked hard to right its course and to improve relationships with Congress," Kerry says in a statement. "We may have some differences on policy, but he's always been professional, responsive, and dedicated to the mission."
The National Association of Realtors likes the new HUD pick as well. "NAR has had a positive experience working with Administrator Steve Preston in his role with the US Small Business Administration and we believe he will do a fine job representing HUD, and helping the nation navigate through the housing downturn and the mortgage crisis," NAR President Richard Gaylord says in a press release. "Mr. Preston's past experience, both as CEO of ServiceMaster and as SBA Administrator, gives him good insight into the needs of small businesses that serve the real estate and housing industries."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
