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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (14355)	9/30/2001 11:11:24 AM
From: Roger A. Babb	Read Replies (2) \| Respond to of 19633

Dale, the bank pressures on existing loans are coming at renewal time when they want a reduction in amount as a price for renewal. Most small business loans have a one year term and float at prime plus some percentage with a monthly reset. The inablility of small business to get adequate debt financing is one of the major factors in the current recession, most growth comes from small business and depends on debt financing for equipment, inventories, and receivables. I know businesses that have reduced their sales efforts simply because the amount of receivables and inventory they can finance has been reduced. If the government wants to grow the economy, it must make funding available to small business to support that growth. We currently have just the opposite, a contraction of funding available to small business. This is particularly hard on small manufacturing companies. (I define small business as under $25 million annual sales)