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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Oct. 26, 1958)
Outlook for Small Business in 1959 Considered Bright by SBA Mm mi By A. ROBERT SMITH Mail Tribune Washington Correspondent Washington (Special) The outlook for small business during the coming year is con- KTsidered brieht '"V, ?sby economists Eiof the S m a 1 1 EBusiness Administration I who keep their Ifinger on the nation's econo mic pulse. They foresee a p e r i o a oi a Buhl imith greater swmi- ity in the small business field with a healthy decline in the number of small business fai lures. They doubt that credit will be tightened any further by actions of the Federal Re serve Board in the coming year. They believe the infla tionary movement has slack ened and will not show any substantial acceleration in the year ahead. These forecasts plus the fact that SBA is now in a stronger position to offer fi nancial assistance to small business firms because of re cent legislative action are in marked contrast with the past year when small business fai lures hit a post-war high due mm OLD "FASHIONED especially when used with the Ashley downdraft thermo stat controlled wood heater. Ashley gives 24-hour cleaner heat with "no fires to build n cold mornings." Remember, Ashley means MORE HEAT. ST' Repair Parts and Service BIG Y FEED & SEED 1948 Pacific Hiway, North SP 3-3160 MEDFORD to the recession Estimate Failures SBA estimates the number of failures for 1958 will run around 15.000, compared with 13,739 failures in 1957, 12, 676 in 1956, 10,969 in 1955, 11,086 in 1954 and 8,862 in 1953. The peak of failures was reached last March when 1,495 firms folded. General building contrac tors who collapsed during the building decline of the past year or more, notably in resi dential housing, accounted for many of the small business failures. During the first half of this year, failures were higher also in lumber and lumber products, printing and publishing, metalworking, re tailers of furniture and home furnishings, apparel and ac cessories, auto dealers and gas stations, SBA reported. Two Relevant Factors While critics of the admin istration's now-a b a n d o n ed tight money policy blame it for the excessive failures, a charge SBA economists don't directly challenge, SBA points out two relevant factors which must me weighed in evaluating what's been hap pening to small business. One Is that the average number of failures in small business enterprises over the past 50 years has been be tween 13,000 and 14,000 a year so the 15,000 expected failures of this year , is not much out of line. This ave r a g e, of course, includes heavy failures during the Great Depression, but it also includes wartime years when failures were few. Surprising ly, failures during the Roar ing Twenties were much high er over 23,000 in 1922 and in 1928, for example than to day's collapses. The second factor is that the number of firms has increased greatly. The number of con struction firms nearly doubled from 1946 (244,000) to 1957 (477,000). In 1946, there were 139 failures of construction businesses, whereas last year there were 2,105. "Weeding Out" Period In a broad sense, the past year or two has been a "weed ing out" period for the host of new enterprises launched after the end of World War II when consumer demand shot sky high. Only those en joying some favorable econo mic position or those strong enough to withstand the on set of a competitive economy a buyers' market instead of a sellers' m a r k e t are des tined to survive. Another factor making for a prediction of greater econo mic stability for small busi ness in the period ahead is that the average age of small businesses in this country is now about seven years, where as after the war when so many new enterprises were started the average age was only three years. This means there is relatively more busi ness experience guiding these surviving successful com panies. Business Loans During the period of reces sion, an increasing number of companies turned to SBA in quest of credit. Applications for business loans went from about 300 to 400 a month to 800 to 1,000 a month. This, SBA officials say, reflected an insufficiency of available pri vate credit from banks. SBA's rate of approval of loan appli cations now runs around 65 per cent, a slight increase. SBA bumped against its lending ceiling several times, but Congress came to the rescue to provide more funds. SBA's revolving fund author ization now has gone up from $530 to $650 million, and the amount that can be outstand ing in business loans has been increased from $305 to $500 million. Congress also cut the maxi mum interest rate from 6 to 5Vi per cent on SBA loans. When banks participate in a loan, the interest rate on their share is not limited. The maximum amount of a loan to one firm was raised from $250,000 to $350,000. Permanent Federal Agency SBA, moreover, is now a permanent federal agency under the act passed last July, From its creation in 1953 un til then, it was regarded ai a temporary agency to provide financial help to small firms getting into defense work dur ing the Korean war. During the fiscal year, which ended last June 30, SBA made 4,014 business loans amounting to $194,997, 000, plus 1,559 disaster loans totaling $17,305,000. But in July, August and September, the number of loans approved sharply in creased over the same period of the previous year, indicat ing that small business firms will be making use of SBA's increased lending authority this coming year. For Septem ber alone the number of loans approved was a third higher than September last year, Approved In Oregon During the past year, Octo- Ask us how to put the house in the picture Chances are, if you're like most people, the two important things you need to get a home are money for a down payment and a loan to make up the difference. Our asso ciation specializes in helping you get both these things. In fact, there's no more ideal place you could go for home financing help. And here's why: Ik. 1. We know more about home loans because we make more of them last year, one out of every three home loans throughout the U. S. was arranged by associa tions like ours. Kg? nua J 2, Yon get friendly understanding- and attention to detail from our staff which is experienced in home financing. S. You repay your loan just like rent. A single monthly repayment is usually set up to include principal, interest and prop erty taxes. 4. While you're saving- for flit down payment, your money earns excellent returns, and is insured up to $10,000 by the Federal Savings and Loan In surance Corporation, an agency of the U. S. Government. "Make YOUR Financing Problem OUR Problem" SAVINGS tr LOAN ASSOCIATION Sine. ISO 126 East Main Medford "Where You Are Paid to Save" Approximately 2,000 high school and college students from almost every state and many fcTreign countries as semble each summer for ar tistic training at the National Music Camp near Interlochen in West Michigan. ber, 1957, through September, 1958, SBA approved 81 loans for firms in Oregon. The to tal amount of these loans was about $4.5 million, ranging from a $4,100 loan for a Myrtle Creek washing and drying laundry service to a $275,000 loan to the Oregon Turkey Growers as Salem Tor processing the big birds. The smaller loan was entirely from SBA, whereas the larger of the two had the participa tion of a local lending institu tion for part of it. Other Oregon firms to gain approvals this past jear in cluded: Jewett Office Supply, Medford, $15,000; John's Plumbing and Heating, Myrtle Creek, $12,000; Myrtle Creek Building Supply, $25,000; George and Dean Lewis Log ging company, Applegate, $15,000; Gilman's Dairy Farm, Inc., Medford, $10,000; Ber nard T. Thompson. Medford dentist, $15,000. Fund Presented for Purchasing Volumes In memory of the late Mrs Charlotte Collins, Dr. and Mrs. Richard B. Stark of New York City have presented the Jackson County library with a fund to purchase memorial volumes. Court Records DISTRICT COURT Dan O. Talbott. overload, $79; insufficient binders, S15. Haywood R. Calkins, failure to stop. S10. Vernon Buck, overload. $29. James D. Whitely, overload, $170. Dave W. Regan, violation basic rule. $15. Tibor J. Zsenbery, no muffler, $15. Augustine T. Lewis, overload, $173. Shirley R Kelly, failure to itop, $10. Robert J. Vaugh, racing on pub lic highway, $30. . Glen A. Branch, exceding pos session limit of dark geese, $30. Ruth K. Dean, violation basic rule. $15. Brewer, overheight $15: (twice), $5. Wilburn, failure to James W. and overload, Harold W. top. $10. Douglas A: lie rule, $15. Harsh, violation b- CIRCUIT COURT Mabel F. Silver vs. Alva C. Sil ver, divorce complaint. Donna Jean Leaf vs. Chadwick Oliver Leaf, divorce complaint. Mr i. Collins own love of poetry influenced the selec tion of titles to be placed in both the children's and the adult collections 'of .the li brary in her honor. Younger readers .will- find memorial bookplates naming Mrs. Collins in four favorite volumes by A. A. Milne: "When We Were Very Young," "Now We Are Six," "Winnie the Pooh," and "The House at Pooh Corner." The publication selected to honor Mrs. Collins in the" ad ult literature section is the new and unusually fine "At lantic Anthology of British and American Poetry" com piled by Edith Sitwell and the Atlantic Monthly maga zine staff. All selections nam eed are now on order from the publishers. " ' Several other books were recently placed in the library in memory of Mrs. Collins by her son, Robertson E. Collins. These include the three-volume Players' edition of Shake speare's complete works and the prizewinning children's For a bit of old Ireland, there is the town of Erin, Wis., Donegal Road intersects Dublin Drive and Shamrock Road crosses Emerald Drive. New Jersey has 699 square miles of inland water, com prising more than 800 lakes, ponds, bays and harbors. books of the year, "Time of Wonder," by Robert McClos key and "Rifles for Watie," by Harold Keith. MAIL TRIBUNE, Medford, Oregon, Sunday, October 2, 195S 7 Benson Says Economy Moves Forward Again Alma, Wis.-ajPB-Agriculture Secretary Ezra Taft Benson yesterday claimed the nation al economy was moving for ward strongly again because the Eisenhower administra tion avoided "extreme action urged on it by panicky New Deal-Fair Deal politicians." - T " icut r irm mi and Suction to loos Dental Plates Onj application last many months . Central Rexall Drug We Give S&H Green Stamp MAIN & CENTRAL FOR ALL YOUR alHSBi NEEDS You Can Depend upon . gear JAKE & SEllTII rQlUlllMi If you are planning en painting or re decorating this fall come in and see us. We'll help you choose the kind of paint, the colors and amount yen need to do the job whether inside er outside. 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