Democrats seek financial rescue of minority-owned broadcasters

House Majority Whip James Clyburn (D-SC) is leading an effort to convince Treasury Secretary Timothy Geithner to take "decisive action" by extending credit to minority-owned broadcasters suffering from a lack of capital and lost advertising revenue amid the economic slump. Rep Clyburn and other senior members, including House Financial Services Committee Chairman Barney Frank (D-MA) and Ways and Means Committee Chairman Charles Rangel (D-NY), argue that minority-owned broadcasters are sound businesses, but that the recession could undermine the government's efforts to diversify the airwaves. The congressmen suggest the Treasury Department could provide access to capital to minority-owned broadcasters, which they say represent less than 7 percent of full-power radio stations and a "negligible" ownership of television stations. "They are looking for continued access to capital to continue their otherwise fundamentally sound operations," the members write. The letter suggests Treasury could set up a credit facility specific to the industry, similar to the government's efforts to support auto suppliers, or possibly set up a program for bridge financing and government-backed loans until the economy improves.