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Show supplement to the National Enterprise Misaka at Bat for Minorities Among disgruntled! Whites who have been turned down for SBA loans, a common complaint is: If my name was only Gonzales Unfortunately for many prospective minority businessmen, it takes more than a SBA: Help or Hindrance by Marc Johnson Almost no one is happier with the recovery of Utahs economy than the small businessman looking for credit. Now, small businessmen talk euphorically of falling interest rates, a looser money supply -and increasingly of the SBA. The Small Business Ad- ministration is a national organization designed to help small firms successfully counter the clout of better heeled industry giants. The agencys cheif weapons are SBA guaranteed loans which commercial banks can make to host of other talents some prospective businessmen! dont have. Where can they; businessmen who would not normally qualify for anything more expensive than car payments. ' All during the gloomy recession years of 1973-7small businessmen faced the prospect of borrowing money at somewhat above the prohibitive interest rate of 12 percent. Even SBA guaranteed loans were difficult to obtain as bankers took an increasingly dim view of lending money at several percentage points below the market rate (IOV2 percent) as the SBA 4, Rates Under Scrutiny Utah insurance companies will be asked next week to prove that their rates for medical malpractice insurance are fair and competitive. Insurance Commissioner C.N. Ottosen has scheduled a public hearing for July 15 to consider the subject. According to Ottosen, We want to find out the situation regarding malpractice insurance. This is an information gathering hearing. All states are experiencing the same problem with this type of insurance, he said, and that problem is high rates. We want to find out how to overcome the problem, and if the rates are warranted, Ottosen added. Chicano name to get an SBA loan. SBA approval hinges on a proven tack record, managerial skills, knowledge of lending institutions, and a losses began going up. As losses increased, companies began to fail. Most stopped writing malpractice insurance. In Utah one company, Aetna Life and Casualty, writes about 90 percent of the insurance. Continued on page 6b hovers around 2.5 percent, .5 loans fell precipitously from to 1.0 percent higher than over $39 million in fiscal 1973 before the recession. But the U.S. total is more than twice to just $26 million in 1975. as great. Several studies indicate Annual Goal Doubled that the Salt Lake office reFortunately, the trend covers anywhere from 60 to 80 has sharply reversed itself this cents on the dollar for collateral it must liquidate. Even year. Already loans guaranteed by the Salt Lake SBA the lower figure more than office have reached the $32 doubles the national figure, million mark and should top however. The Salt Lake office has $38 million when the fiscal 1. (The been judged the outstanding year ends July national offices goal for the office of the year in the SBA Region 8 for the Salt Lake office: $15 million.) This is but one of the last three years. statistics which has brought With the help of the from Utah Lake businessmen Salt office, two Provo praise and bankers alike. Among the families parleyed a household feathers in the Salt Lake hobby into a business manuoffices cap: facturing toys for more than One out of every 8,000 outlets. Their phenomUtah businesses (depending enal sales growth prompted on how a business is defined) their selection as the national has received at least one loan small business firm of the year from the SBA, compared to for 1975. less than 1 in 50 nationwide. An SBA program which The delinquency rate allows university students to (the percent of firms which are analyze a small business under 60 days delinquent on their the direction of their profes- SBA loan payments) still Continued on page 3b required. Consequently, SBA six-sta- te 7-- 10 turn for help? For many of the disadvant-- ; the answer is Tats! economically aged, Misaka. A Japanese-America- n; who is president of a man- agement consulting firm, Misaka got started several years ago counselling minority businessmen because he saw a need. More specifically, he noted that many of the disadvanteconomically aged lacked many business; skills and a solid background. Since then, Misaka has; helped hundreds of prospective businessmen, some only! casually for a few minutes, others for years. Misakas! greatest contribution, how-ve- r, has been his willingness to go to bat for the minority; businessmen seeking credit. Consequently, hes a common feature in the SBA SBA executives office. describe him as one of the most effective minority leaders in Salt Lake City. They point to his friendly personality, extensive business and Continued on Page 5b Construction to Begin on Trolly Corners This month the Boyer Company and Trolley Theatres expect to begin construction of the $4 million Trolley Corners development to be located at the corner of 7th East and 5th However, Independent South, across from Trolley Insurance Broker Mike Leavitt Square in Salt Lake City. who helped write a malpracTrolley Corners, an oftice bill passed by Utahs fice, retail, theatre complex, legislature this year disagreed will consist of about 100,000 with Ottosen. The problem square feet. A ring of offices with malpractice insurance is will surround an inner atrium not just high rates, he said. where a bank, two restaurants Its really a social problem. and three theatres will operPeople are out for a fast ate. According to Roger Boyer buck, and are It is a complex problem, but it of the Boyer Company, which all stems from the attitude of specializes in insurance comthe American people. They panies, accounting firms and want to get something for real estate offices, about 45,000 square feet will be nothing. Insurance companies in devoted to office space. The general are experiencing the Union Bank, a newly chartworst period in the history of ered bank approved by the Leavitt conState, will headquarter there. the industry, In 1972 and 73 Restaurant leases are still tinued. insurance companies were being negotiated, Boyer said. He said the development Everyone making money. is being financed by Valley jumped in, and the competition drove premium prices Mortgage which has provided downward. Then inflation construction financing and came along. And all the time Pacific Mutual Life Insurance premiums were going down, which has provided the long term financing. He said he expects the development to be completed It will by next summer. include two levels of parking with 252 parking stalls, and an 800 seat theatre along with two smaller theatres. The project was originally designed by Ab Christensen of Architects-Planner- s Alliance, and is being finished by Paul Evans of the firm. It will be constructed by J. Ron Stacey Construction. It has been on the drawing board for over a It has year, Boyer said. been the most complicated development we have ever undertaken, he added. sue-conscio- Construction will begin this month on the $4 million Trolley Corners development to be heated at the corner of 7th East and 5th South . |