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Fred Graziano, TD Bank head of Regional, Commercial, Government and Small-Business Banking, on the latest optimism surveys for small-business owners.
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-- them.
-- well -- mom businesses are called the engines of growth but how to -- about the economy these days -- according to latest survey.
From the National Federation of Independent Businesses not so -- -- drop.
Here break down the numbers is progress -- ahead of regional commercial government and small business banking for TD bank.
I'm very glad to -- because our small businesses at least in the past have not been feeling very good have -- Yeah and we're seeing that also aware with our own survey -- with in the northeast.
That the small business customers actually meeting their sales -- -- expect -- expectations.
-- quite honestly they don't feel that will continue in the future looks a little bit.
Which is total opposite from the it National Federation of Independent Businesses survey isn't because that's survey came -- and said that there revenue expectations are falling.
Maybe they have a little bit more optimism that the future.
Well I don't think so I think what worsening within the northeast footprint is that.
This year sales seem to be OK for the small business and practically to profitability.
What they don't feel comfortable with is where the economy is going in fact.
About 25% of the people that we surveyed said that.
They were unsure of the economic conditions going forward is -- relates to what they would want to do.
Which is invest in their company and hire more employees to his hand out right if you have optimism about the economy how could you possibly have optimism about your future sales well that's exactly well you know if it were calling about existing cells -- sales this year seem to be okay.
They feel comfortable with where we are with sales but what they're not doing his -- long term.
Sales expectations also if you going to be a small business and you're gonna invest for long term and take out debt.
Then you want to make sure that it's gonna continue beyond just this year that you're gonna seat in 2013 and fourteen.
And I think that's where the disconnected so what is the problem with 2013 and fourteen isn't it insurance is -- regulations is it health care coming down the -- I think it's all of those it's the uncertainty that we're seeing in Europe.
It's consumer confidence is down and let's not forget one of the big engines that drive small business borrowing.
Israel statement and there are still you know a lot of foreclosed inventory that needs to be sold.
And quite honestly between that.
And the lack of loan demand because what customers are doing his -- deleveraging to -- him profitability they're paying down debt.
Instead invest in the things we want to see which is capital expansion and employee -- that.
-- take an interesting change is -- this notion of deleveraging I don't wanna have debt I wanna be just basically to be able to pay everything clear.
The problem though is you can't grow if you don't take on debt so what's gonna turn the tables for them.
I think what we're seeing is what we would talk -- refer to worst -- And what we're saying is that we don't have enough new business coming into the market and well we need more -- new businesses and expansion of new businesses and order create more.
Employee turnover and we're not getting -- -- today.
And small businesses existing small businesses are actually taking their capital and paying down her debt saying we look at.
Line usage -- term loans real estate mortgages.
In the past we would see anywhere -- 1555%.
Line usage not hate us down to about 40% that's a big difference when it's gonna take a while Fred Christiana T bank thank you very much for being here thank him twisting stuff.
OK we'll just to keep of the doom and gloom.
Actually is leaving I don't know why we -- so much fun of the something I did it.
-- -- to Fox Business I'm just going on a road trip.
These -- that -- -- -- from Greece will be reporting from Greece on Thursday through the elections which are on Sunday.
We then had to Madrid and to Spain to look at their banking system and that -- obviously they.
All full unemployment problems that was seeing in Spain.
And then we'll be heading to Brussels.
For the end of the month because of the June summit -- on June 28 and twenty ninth.
We're gonna have a big map where in the world is actually.
The united still be during the show objectionable to their highest in Newton.
The -- jokes and man hill today good night.
That was funny that's.
Bad thought C say it's a delay of --
