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Log inLawmaker's 'parting gift' a credit report for Maine
Lawmaker's 'parting gift' a credit report for Maine
by Outspoken on Sun Nov 16, 2008 7:44 am
Lawmaker's 'parting gift' a credit report for Maine
Sen. Lynn Bromley gathers data on businesses and start-ups that want to borrow.
By EDWARD D. MURPHY
Staff Writer Portland Press Herald
State Sen. Lynn Bromley, D-South Portland, said the stories she hears about the availability of credit in Maine don't add up.
On the one hand, bankers assure her that banks in Maine are sound, avoided making bad loans in the last few years and have money to lend.
"And on the other hand, we're hearing you can't get any money," said Bromley, who has called a meeting of her Business, Research and Economic Development Committee to try to sort out the conflicting views on the credit market in Maine.
"It's a parting gift," Bromley said of the meeting. She's a term-limited legislator who wants incoming lawmakers to have a good sense of how much money is available for business expansion or start-ups in the state.
Joseph Murphy, chairman of the Maine Bankers Association and president of Bar Harbor Bank & Trust, said all the Maine-based community banks he's aware of have money to lend, but admitted that credit standards are at least somewhat tighter than they were a year ago, when credit nationally became harder to get and lenders started using stricter eligibility guidelines.
"They're all making prudent loans and nobody's stretching to make imprudent loans in a weak economy – that's a fact of life," Murphy said.
Murphy also said that fewer people are applying for business loans – probably holding off because of the weak economy – and that could create the impression that banks aren't lending.
"Everybody's hunkering down out there" because of turmoil in the stock market, business cutbacks and sharp decreases in consumer spending, he said. Entrepreneurs, in particular, "in more bullish times might have taken on projects that they're not doing right now."
Murphy said Maine banks have generally followed conservative lending practices, but now are more likely to be challenging sales or cost assumptions on business plans they are presented by loan-seekers.
"It will be a tough time for starter businesses," he said. "Optimistic projections might be more suspect than they were a year ago."
Murphy said that means borrowers with a good track record are likely to find bankers competing for their business, while those looking to start a business are going to need to come up with a very sound plan in order to land a loan.
"You have to be very sure of yourself" to seek the loan, he said.
http://pressherald.mainetoday.com/story.php?id=222211&ac=PHnws
Sen. Lynn Bromley gathers data on businesses and start-ups that want to borrow.
By EDWARD D. MURPHY
Staff Writer Portland Press Herald
State Sen. Lynn Bromley, D-South Portland, said the stories she hears about the availability of credit in Maine don't add up.
On the one hand, bankers assure her that banks in Maine are sound, avoided making bad loans in the last few years and have money to lend.
"And on the other hand, we're hearing you can't get any money," said Bromley, who has called a meeting of her Business, Research and Economic Development Committee to try to sort out the conflicting views on the credit market in Maine.
"It's a parting gift," Bromley said of the meeting. She's a term-limited legislator who wants incoming lawmakers to have a good sense of how much money is available for business expansion or start-ups in the state.
Joseph Murphy, chairman of the Maine Bankers Association and president of Bar Harbor Bank & Trust, said all the Maine-based community banks he's aware of have money to lend, but admitted that credit standards are at least somewhat tighter than they were a year ago, when credit nationally became harder to get and lenders started using stricter eligibility guidelines.
"They're all making prudent loans and nobody's stretching to make imprudent loans in a weak economy – that's a fact of life," Murphy said.
Murphy also said that fewer people are applying for business loans – probably holding off because of the weak economy – and that could create the impression that banks aren't lending.
"Everybody's hunkering down out there" because of turmoil in the stock market, business cutbacks and sharp decreases in consumer spending, he said. Entrepreneurs, in particular, "in more bullish times might have taken on projects that they're not doing right now."
Murphy said Maine banks have generally followed conservative lending practices, but now are more likely to be challenging sales or cost assumptions on business plans they are presented by loan-seekers.
"It will be a tough time for starter businesses," he said. "Optimistic projections might be more suspect than they were a year ago."
Murphy said that means borrowers with a good track record are likely to find bankers competing for their business, while those looking to start a business are going to need to come up with a very sound plan in order to land a loan.
"You have to be very sure of yourself" to seek the loan, he said.
http://pressherald.mainetoday.com/story.php?id=222211&ac=PHnws
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Plato (427-347 BC)
Plato (427-347 BC)
