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2,500 JOBS CAN BE SAVED IN NEW HAMPSHIRE BY SBA PLAN MASSACHUSETTS, MAINE NEXT CANDIDATES FOR CREDIT RELIEF

 2,500 JOBS CAN BE SAVED IN NEW HAMPSHIRE BY SBA PLAN
 MASSACHUSETTS, MAINE NEXT CANDIDATES FOR CREDIT RELIEF
 WASHINGTON, Jan. 30 /PRNewswire/ -- U.S. Small Business Administration (SBA) Administrator Patricia Saiki announced today that in less than three weeks, the SBA has identified 579 small firms with approximately 2,500 jobs which can be preserved in New Hampshire as a result of SBA's New England Lending and Recovery Project.
 Since the pilot project began Jan. 6, SBA has initially committed to restructure loans worth $96 million to small companies which were facing credit problems due to the financial collapse of New Hampshire banks. It is hoped that another 200 New Hampshire companies can also be candidates for this project.
 "This pilot SBA project will provide immediate relief to small business in New Hampshire and at least 2,500 jobs can be saved as a result," Saiki said. "And 2,500 people earning a salary are 2,500 people who can shop and support other businesses in their communities.
 "People want paychecks, not unemployment checks," Administrator Saiki added.
 "Small business is the main engine for generating new jobs in America," she said. "Whether it's the local service station, dry cleaner, baker or small manufacturer, it is the segment of our economy which must be supported and encouraged if we are to pull ourselves from out of this current recession. This project is an investment in our economic future."
 SBA expects to expand this pilot program to the remaining New England states, including Massachusetts and Maine, by the end of March.
 Since the collapse of five of the seven largest banks in New Hampshire, SBA has been working with the Federal Deposit Insurance Corporation (FDIC) which took over these failed institutions to provide new "quality" loans to small businesses and where possible, restructure existing loans made by these banks.
 "Once experience with this project has been gained in New England," Saiki added, "SBA could - with help from the FDIC - apply the model used there to other regions facing similar problems."
 The project consists of three elements:
 --SBA-guaranteed loans held by the FDIC: SBA has arranged to review SBA-guaranteed loans under FDIC control. To date, 37 loans worth $9.8 million have been identified for transfer to the agency. SBA will service these loans.
 --Other FDIC-held small business loans: FDIC-controlled loans are being reviewed by SBA to determine whether small business loans not currently guaranteed by the SBA can be restructured by means of an SBA guarantee.
 --New lending: A small business lending company (SBLC), licensed and regulated by the SBA was introduced to the region. The SBLC can provide private capital which could stimulate new lending and boost business confidence. The SBLC has already issued 180 applications to firms it considers good candidates for financing.
 -0- 1/30/92 R
 /CONTACT: Mike Stamler of the U.S. Small Business Association, 202-205-6919/ CO: The U.S. Small Business Association ST: Massachusetts, Washington,D.C. IN: SU:


TM-DD -- NE013R -- 5345 01/30/92 14:48 EST
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Date:Jan 30, 1992
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