Related News ArticleNH seeks small business boost
New Hampshire Sawmill Small Business Industry
June, 29th 2009
(NECN: Lauren Collins, Manchester, N.H.) - Dave and Debbie Buxton rebuilt their sawmill when it was leveled by a tornado in 1997, and added a retail division when off shore competition cut into their raw products business. New England Forest Products offers a variety of native lumber products including cedar lumber, oak lumber, pine lumber, roughcut lumber, bark mulch, and much more.
But in this recession, Dave says "the sawmill business is not in favor with most financing institutions. So it's been difficult to find people that really want to support us."
They -- and more than 400 small business owners -- sought help Monday at New Hampshire's largest ever small business financing fair hosted by Senator Jeanne Shaheen, who says, "we've seen an increase in loan volume here by about ten million dollars which is good news."
The difference is in the American Recovery and Reinvestment Act. The stimulus bill freed up some of the restrictions on SBA lending and while the agency does not provide small business loans, it does guarantee qualified bank loans and can now back 90 % of one to virtually eliminate risk.
It's also waived burdensome fees and just two weeks ago launched the ARC program, which SBA District Director Witmer Jones says the agency will "guarantee 100 percent of a 35 thousand dollar loan to a struggling business."
But even after they inquire about all of the options made possible by the recovery act, many business owners say the answer from the banks remains the same.
Dave McCurdy owns MTS Associates of Hookestt, which sells golf carts and industrial vehicles. He's tried to
get a loan to cover his cash flow, working capital and inventory but has been denied.
He says "it feels like the requirements to get that credit has gotten more stringent and harder to get.
He'd like the SBA to issue and not just back small business loans, but congress shot down that idea last year.
Lenders say even with stronger guarantees from the SBA, some applications will still be denied. But Rich Sidor says will be approved and at Northway Bank, "we're seeing a lot of inquiries and a lot of new loans happening. It's a great time actually"
The success of New Hampshire's small businesses is critical - they employ half of the workers in the state.
lumber | flooring | millwork | bark mulch | cordwood | additional products
