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We'll see IT's filing for bankruptcy -- many small businesses in the lurch where else can you turn to credit joining us now.
Is James Kirby is president of small business -- deer path capital management.
They operate in really what they called mid to lower market offering loans of what three million to about fifteen million bucks that's -- -- -- -- -- the program by the way good -- you know listen when the CITs crossed and it's been rolling out for awhile.
The idea is outside the SBA Small Business Administration if somebody out there wants a startup of a business -- the -- need to couple million bucks and loan.
They're probably not gonna get it from CIT now on it.
I think the problems of CI TR just one example of problems facing many financial institutions you had a large number.
Of non bank lenders that were essentially getting their own financing through the capital markets.
Finance companies today are having trouble getting their own financing and when they can't get their financing -- difficult for them to provide loans to small businesses.
One of the markets that I think is still open and thriving -- Small Business Administration programs and as components of that.
The small business investment companies I think are very good angle for small companies to target to let -- talk more about that because people know the -- kind of tradition all.
Two types of SBA lines but talk about that the investment companies which is what you did yes there are firm pure path capital is an example of a small business investment company.
The FB IC program has been around since 1958 so this is a longstanding program that was set up specifically to encourage investment firms to provide capital to small businesses.
There are something like 350 SP -- C funds active today.
And collectively they represent about twenty billion dollars capital so while we're not as large Citibank for example there's like capital there that can help a lot of small companies so.
These are firms that make debt and equity investments in small businesses.
And benefit from government support for that we can get our financing on a long term basis on attractive terms with the help of the SBA.
And that enables us to make five to fifteen million dollar loans to small companies and attractive terms though.
-- your business picked up recently -- are you seeing more interest in what kinds of terms.
Do you make on a typical loan these days given the risk that's out there in the economy charm there's no question there's a lot of demand out there today for loan financing we we got our license from the SBA in July -- -- fairly new player.
And now we've got our.
They basically for a full of capital we're looking to deploy today.
Are typical investment would be -- first lien secured loan.
That could be used to help a business expand internally or make an acquisition or refinance debt if they have debt that's maturing.
And it looks a lot like a bank loan if you look at the pricing -- terms of it but James therein lies one of the issues that is for existing businesses that have a track record that's not for a startup.
It's true I mean we are not focused on start -- companies were looking for businesses that have been around long enough to have a customer base to have profitability to have.
The capability to pay interest and principal on alone.
In there are -- variety of different firms within the FB IC programs some of which I think are more equity oriented and we are but but our firm is really focused on providing loans to small companies and we think there's a huge need for loans to small companies today.
-- -- people that may be as today against point to follow on that people who want to start a business from scratch these days they have an idea they've got a business plan the numbers seem to make sense.
Where can they turn now and what advice would you -- -- the -- Well I think a lot of the historical -- avenues are still open they they turned to Angel investors they turn to venture capital investment firms friends and family friends and family is challenging no question but within the Small Business Administration -- -- a number of different programs when I've described the small business investment company program is just one of many programs the SBA administers and down I think he has skated great resource to turn to not only do they help facilitate.
They have people in regional offices taking give advice and guidance on -- for the worst trying to get started side I think that's a great resource for Small Business Administration quickly James in what areas in particular are you seeing demand -- We are seeing a lot in health care we're seeing opportunity in energy we're seeing opportunities in the communications sectors those are three areas we specifically target.
But really across the board general manufacturing company's services companies.
Companies of all different types of industries need help with financing today nice to hear about a company that is lending James Kirby deer -- capital management James thank you very much -- to --
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