One sure sign of a healthy economy would be if small- and medium-sized banks are able to obtain credit to grow their endeavor. But thus far in the presumed recovery, the heads of some of the region”™s chambers of commerce say they discern few indications credit conditions are improving.
But some also say credit can be had, if businesses are savvy about providing sound plans.
“We haven”™t seen any change,” said Al Samuels, President and CEO of the Rockland Business Association. “There are very stringent requirements for loans. I believe credit has become more difficult since the recession.”
“I”™ve still heard people complaining,” said Pete Bardunias, executive director of the Greater Mahopac-Carmel Chamber of Commerce. He noted that in Putnam County: “Over 90 percent of our businesses are mom and pop, the smallest of the small. Our members are going to have the most trouble accessing credit and I think the trouble is still out there.”
Bardunias was aware of emerging banking programs piloted in Ulster County, where consortiums of local banks and the state Small Business Development Center are seeking to arrange credit in amounts particularly aimed at meeting the funding needs of small business. He said his chamber was fomenting meetings between bankers and business people. “It”™s very grass roots,” Bardunias said. “Getting people face to face and letting them do things together.”
Things may be a little better a bit farther up the Valley. “I see slow changes in the tide ”“ so, so slow ”“ but there is a change in the tide,” said Ann Meagher, president and CEO of the Greater Southern Dutchess Chamber of Commerce. She said smaller banks, “because they can be nimble” are more actively speaking of making loans, but said it is imperative that businesses prepare diligent business plans before approaching loan officers. She said a small business should consult with SCORE, the retired-executives advice service. “Their services are free,” she said. “And it”™s so critical to be well prepared. But the banks message is: They have money to lend, so hopefully the proof will be in the pudding.”
Most optimistic, but still cautious, was Charles North, president and CEO of Dutchess Regional Chamber of Commerce. “I think credit is loosening up,” he said. “It”™s not flowing, but there is definitely a change over this time last year.” He said he knew of builders and engineers who were acquiring credit ”“ help that would not have been available in 2009 ”“ and that such businesses, particularly engineers, might be viewed as positive leading indicators.
Orange County Chamber of Commerce President and CEO Dr. John D”™Ambrosio also saw signs of thaw. “I know things are tough, but I also sense an optimism out there that is not necessarily tied to the stock market,” he said. “I”™m not hearing a lot of complaints from our members regarding credit and their ability to get credit.”
Perhaps that is not surprising. According to a national study by the American Chamber of Commerce, chamber members in general “tend to be more credit worthy.”
