MoreMCLEAN, VA-In a statement released March 19, 2009, Ronald Schildge, Association for Manufacturing Technology (AMT) chairman of the board, commended the Obama Administration’s plan to aid financial backing for small business lending, citing loans made through the Small Business Administration (SBA) as a key component of the effort.
However, Schildge said that more must be done, recommending that eligibility requirements for SBA 7(a) loans should be relaxed as well.
“These small manufacturing businesses are historically strong but don’t have the resources to weather the storm without help,” wrote Schildge. “If SBA preferred lenders take into account only the past few months’ business performance-as current policy requires-most of these businesses would fail by any credit test. Lenders should instead examine the longer-term financial history of a company when making decisions about whether to approve a loan.”
For more information visit www.amtonline.org.
However, Schildge said that more must be done, recommending that eligibility requirements for SBA 7(a) loans should be relaxed as well.
“These small manufacturing businesses are historically strong but don’t have the resources to weather the storm without help,” wrote Schildge. “If SBA preferred lenders take into account only the past few months’ business performance-as current policy requires-most of these businesses would fail by any credit test. Lenders should instead examine the longer-term financial history of a company when making decisions about whether to approve a loan.”
For more information visit www.amtonline.org.
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