[Hidden-tech] Is the small company credit crunch effecting you ?

[Robert Heller]

At Tue, 13 Jul 2010 09:42:13 -0400 Rich Roth <webmaster at hidden-tech.net> wrote:

> 
>    ** Be sure to fill out the survey/skills inventory in the member's area.
>    ** If you did, we all thank you.
> 
> 
> http://www.google.com/hostednews/ap/article/ALeqM5jRUdVe2fg-5H6hVmcoaoIFxPIxwwD9GTOO300
> 
> Notice the type of pressure being used:
> >
> > Bernanke and other regulators have urged banks for months to lend more
> > to smaller companies. Lawmakers have complained that small businesses
> > that want loans are having trouble getting them. Banks have countered
> > by saying demand remains weak.
> >
> > The Fed does have authority to create programs to increase lending,
> > such as providing low-cost loans to banks. 
> 
> Is there 'no demand' because no one wants to waste their time on a loan
> they won't get ?

Wondering: how are these people (banks, regulators, etc.) defining
'small'.  *I* know from personal experience that banks don't want to
bother with 'micro' businesses at all -- the minimum loan is something
like $5,000.  The banks have generally said (with no actuall proof to
back it up) that really small loans ('micro' loans) are higher risk,
even though in third world countries such loans have a higher pay-back
rate than more conventual loans.  The real 'dis-incentive' about
'micro' loans to 'micro' businesses is that the there is not as much
'profit' in them.  I expect that the banks would really rather issue
'business' credit cards, complete with the fees and interest rates that
go along with that.

> 
> Beyond commenting on this article,
>         are you interested in a discussion of running our type of
> businesses ?

Yes.

> 
> I am organizing a fall forum to discuss these issues from the
> perspective of small businesses,
> the agenda is just being created so your input is important.
> The general topic is Economic issues for HT businesses,
> beyond that it is open -- give us your input and ideas,
> a discussion on the list would be good, or if you prefer, reply off list.
> 
> More as it develops.
> 

-- 
Robert Heller             -- 978-544-6933
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