Economic Development Reauthorization Act of 1994 Hearing Before the Committee
Economic Development Reauthorization Act of 1994 Hearing Before the Committee
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What are your thoughts about all that?
Mr. Thompson. If I may, without seeing the details of it, it's very difTicult. If this becomes a loan guarantee program for very large corporations, it's not going to be very effective in the State of Maine, where we are a State of small businesses, and if it in fact diminishes the funding availability for the recapitalization, which I understand just from the comments I'm hearing today that it should not, I'd be concerned in that. I'd rather see the RLFs ...ex- panded to deal with the small businesses in the rural areas if in fact they are competitive with one another.
Senator Baucus. Your thoughts on that subject, Mr. Burke?
Mr. Burke. We have a privately funded revolving loan program of our own. It's designed for those same companies that the Loan Guarantee Program would work for. It's a real problem area be- cause if it's a good enough loan, the banks are taking them right now, and yet if it's a bad enough loan, no one wants it anyway, so you're left with a little sandwich of loans in the middle that don't quite meet current bank lending standards but do have a reason- able chance for repayment, because it is public dollars that we're dealing with.
What to read after Economic Development Reauthorization Act of 1994 Hearing Before the Committee?
You can find similar books in the "Read Also" column, or choose other free books by Zation20act20of201987203a20hearing20before to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
What are your thoughts about all that?
Mr. Thompson. If I may, without seeing the details of it, it's very difTicult. If this becomes a loan guarantee program for very large corporations, it's not going to be very effective in the State of Maine, where we are a State of small businesses, and if it in fact diminishes the funding availability for the recapitalization, which I understand just from the comments I'm hearing today that it should not, I'd be concerned in that. I'd rather see the RLFs ...ex- panded to deal with the small businesses in the rural areas if in fact they are competitive with one another.
Senator Baucus. Your thoughts on that subject, Mr. Burke?
Mr. Burke. We have a privately funded revolving loan program of our own. It's designed for those same companies that the Loan Guarantee Program would work for. It's a real problem area be- cause if it's a good enough loan, the banks are taking them right now, and yet if it's a bad enough loan, no one wants it anyway, so you're left with a little sandwich of loans in the middle that don't quite meet current bank lending standards but do have a reason- able chance for repayment, because it is public dollars that we're dealing with.
What to read after Economic Development Reauthorization Act of 1994 Hearing Before the Committee?
You can find similar books in the "Read Also" column, or choose other free books by Zation20act20of201987203a20hearing20before to read onlineMoreLess
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