Small Manufacturers Hope to Secure $20 Billion in Loan Guarantees

Bloomberg News (8/26, Drajem) – "The Obama administration should consider $20 billion in loan guarantees or insurance for small manufacturers cut out of credit markets, a private-industry advisory panel to the U.S. Commerce Department said." The council said "small manufacturers can't get loans to fund operations or investments." The group said "in a letter to Commerce Secretary Gary Locke that it wants the government to provide individual guarantees of as much as $10 million under the Term Asset-Backed Securities Loan Facility." The council said "banks are turning away small manufacturers seeking loans, and Small Business Administration funding programs aren't being used because of 'stringent requirements.'" The inability "for these companies to obtain financing may undermine an economic recovery, the group said in the letter." The group said "it is setting up a meeting with Locke to discuss the proposals." Hat Tip: NAM