MichiganRadio

U.S. House Subcommittee Wants More Small Business Loans SOUTHFIELD, MI (Michigan Radio) - Members of Congress were in Michigan Monday, to hear about the difficulties many small businesses face trying to get loans.

State officials and small business owners told the House Financial Subcommittee on Oversight and Investigations that it's especially difficult for Michigan-based and auto-related businesses to get loans. A few even suggested that some banks are "redlining" small Michigan firms.

Herb Trute, Chairman of the Tooling, Manufacturing and Technologies Association, says he's cut jobs and expenses at his tool-and-dye company, but still couldn't get an affordable business loan.

"We were offered a loan package totally inadequate to finance a large amount of work we'd been awarded," Trute told the Subcommittee field hearing at Lawrence Technological University in Southfield. "There's definite need, but that is not part of the equation for the banks. They will assume no risk."

Trute and other business owners say tight credit keeps many small manufacturers from expanding beyond the automotive sector. They want the Federal government o set up a national fund for small manufacturers who want to diversify their business.
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