• TOPICS
    • Design
    • Manufacturing
    • Inspection
    • Heat Treating
    • Lubrication
    • Materials
    • The Gear Industry
    • Gears by Type
  • MAGAZINE
    • Current Issue
    • Departments
    • Archives
    • Subscribe
    • Advertise
  • NEWSLETTER
    • Subscribe
  • VIDEO
    • Gear Technology TV
      • Ask the Expert Live
      • Revolutions
    • Industry Videos
  • BLOGS
  • BUYER'S GUIDE
  • NEWS and EVENTS
    • Product News
    • Industry News
    • Events
  • ADVERTISING
    • Brand Awareness
      • Print: Display Advertising
      • Online: Web Banners & Keyword Banners
      • Online: Native Advertising (Sponsored Content)
      • E-mail: Custom, White Papers & Webinars
      • E-mail: Newsletter Sponsored Content (Native Advertising)
    • Response & Lead Generation
      • Online: Sponsored Content (Native Advertising)
      • E-mail: Newsletters
      • E-mail: Newsletter Sponsored Content (Native Advertising)
      • E-mail: Custom, White Papers & Webinars
      • Online: Buyers Guide
    • Print Advertising
      • Print: Display Advertising
      • Print: IMTS Showstoppers
      • Print: Buyers Guide
      • Print: Manufacturing sMart
      • Print: Specifications
    • Online Advertising
      • Online: Web Banners & Keyword Banners
      • Online: Native Advertising (Sponsored Content)
      • Online: Buyers Guide
      • Online: Specifications
    • E-mail Advertising
      • E-mail: E-Newsletters
      • E-mail: Newsletter Sponsored Content (Native Advertising)
      • E-mail: Custom, White Papers & Webinars
      • E-mail: Specifications
    • Special Promotions
      • Print: IMTS Showstoppers
      • Print: Buyers Guide
      • Print: Manufacturing sMart
  • CONTACT US
  • AGMA
    • Membership
    • Events
    • Education
    • Emerging Technology
    • AGMA Media
    • Standards
Subscribe
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Home » NTMA & PMA Issue Statement on Small Business Lending

NTMA & PMA Issue Statement on Small Business Lending

May 25, 2010

The National Tooling and Machining Association (NTMA) and the Precision Metalforming Association (PMA) issued the following statement in connection with the hearing and mark-up of legislation in U.S. House of Representatives to promote small business lending:

"Manufacturers currently lack the access to credit needed to help finance their day-to-day operations, invest in expansion of domestic operations and ensure a disruption in the critical supply chain does not occur.  Traditional lenders have either drastically reduced lines of credit or denied loans to companies that are healthy or temporarily impaired due to the global economic crisis. Small and medium sized manufacturers continue to bear the brunt of the financial crisis - trapped between their customers and creditors. OneVoice supports legislation and regulatory action to help small and medium sized manufacturers that are based on the following principals:

  • Establish Small Business Loan Fund with Unique Regulations. Federal regulators should develop a unique set of consistent and transparent guidelines to govern small business (defined by SBA NAICS criteria) loans placed in a specific pool or program.
  • Inject Capital to Banks, Address Capital Ratios:  The President's Small Business Loan Fund proposal presents a critical first step in shoring up the financial stability for community banks. However, local lenders still face two critical needs-addressing capital ratio requirements and the injection of critical funds or guarantees to encourage lending to small businesses. Providing backing to these banks must be combined with addressing a balanced Tier 1 capital ratio for banks in order to foster and encourage lending.
  • Address Collateral Shortfalls: As the value of real property, capital equipment, and inventory has decreased, many manufacturers face challenges meeting collateral requirements due to temporary appraisal levels.  A program to help meet the collateral requirements and capitalization needs is an important component to addressing the credit crisis facing manufacturers, particularly automotive suppliers.
  • Accounts Receivable Insurance Program:  For the complex manufacturing supply chain, most middle-market companies must purchase materials and equipment at their own cost, waiting months before receiving partial or full payment from a customer. Lenders are restricting lines of credit based on a borrower's accounts receivable (A/R) due from particular customers, especially those in automotive and other volatile sectors. Banks are wary of lending to certain industries for fear the borrower's customer will not pay in a timely manner. A private government guaranteed accounts-receivable insurance program could alleviate concerns of both borrower and lender while improving A/R as a form of collateral.

Congress needs to pass legislation quickly so that thousands of small businesses can obtain the access to capital needed to purchase equipment and rehire employees as the economy recovers."

Industry News
  • Related Articles

    Eaton Vehicle Group Forms ePowertrain Business Unit

    MetalTek Announces Three New Business Units

    PTG Receives Greater China Business Award

Free Gear Technology Subscriptions
Subscribe
Free Gear Technology Subscriptions
Subscribe
FEATURED VIDEO
  • Liebherr pallet
    Liebherr Palletizing Cell
June 23, 2022
RECOMMENDED
  • LPC Carburizing: The Affordable Alternative to Gas Carburizing

    April 25, 2022
    Nitrex2.jpg
  • Hardness Testing Gears — Know Your Options for Best Results

    April 25, 2022
    Starrett1.jpg
  • Kapp Niles Examines Intelligent Rolling Grinding for E-mobility

    April 25, 2022
    Opening Image.jpg
  • Making Gear Grinding Transparent

    May 19, 2022
    Picture6.png
  • The Numbers Game

    May 19, 2022
    Toolx7-featured.jpg
  • Making Gear Grinding Transparent

    May 19, 2022
    Picture6.png
  • The Numbers Game

    May 19, 2022
    Toolx7-featured.jpg
  • LPC Carburizing: The Affordable Alternative to Gas Carburizing

    April 25, 2022
    Nitrex2.jpg
  • Subscribe
  • Advertise
  • Contribute
  • AGMA
Powered byAGMA
Copyright © 2022 Gear Technology
  • Privacy Policy
  • Contact