How have current credit conditions affected your business,
community or industry?
Upper Peninsula of Michigan
Consumers and businesses are both watching their money very closely.
Loan volume is driven at its core by loan applications, which are down
in both sectors.
—Bank with $192 million in assets
We are currently constructing a parking ramp ... and were planning to
issue tax-exempt debt next week. That debt issue has been put off
indefinitely due to high interest rates required by potential
bondholders. We will have to internally finance or use an existing line
of credit until rates and the markets begin to normalize. Additionally,
we have a $60 million construction project that was planned to begin in
May 2009 that will likely be put off months or a year.
—Engineering firm with 25 employees and $2 million in sales
Credit is taking longer to get than usual. More documentation is needed
when it wasn’t in the past; more of a down payment is needed, and my
credit hasn’t changed.
—Insurer with one employee and $135,000 in sales
Our bank keeps telling us that our credit availability has not changed
over the last 12 months. We are, however, being more conservative on
pulling the trigger on borrowing.
—Manufacturer with 380 employees and $52 million in sales
We provide government-relations services to businesses and business
organiza- tions, so we are impacted as businesses consolidate and fewer
players are in the market for our services. The current credit market
has accelerated this consolidation trend for several business types
(financial services and auto dealerships, for example), decreasing both
the number of businesses in the market and the number of businesses
paying dues to an organization.
—Media company with 10 employees and $1 million in sales
Consumers, employees and businesses involved in the manufacturing sector
seem to be the most affected. Consumer confidence of all others seems to
—Bank with $70 million in assets
(Note: Comments are from anonymous respondents to fedgazette surveys on
credit conditions conducted in late April.)