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How do you do? Ladies and gentlemen, I'm delighted to have is my guest on this occasion the deputy administrator of the Small Business Administration, which is a very important position and particularly, do we in Florida? I'm happy to report that this guest happens to come from Jacksonville, Florida, and we're very proud of the work that he's doing and the help he's giving to this state.

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His name is Dick Landman. Dick. Tell us exactly what it is that you do here in Washington. Senator, my function is deputy administrator or financial assistance involves the supervision from a policy standpoint and procedural standpoint of the lending function of the Small Business Administration. Now what does that mean in more simple language, more subtle language.

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This means that I helped to establish what are lending Policies are going to be, how they're going to be operated, uh, policies in our various field offices. And as you know, we have 60 officers throughout the country. How many of those officers do you have in Florida?

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We have two officers in Florida, one in Miami and one in Jacksonville. We have a total of 57 people employed in the SP a in Florida. Now, do the Floridians avail this administration to any great extent? Yes, they have Senate, as a matter of fact, during the first nine months of this fiscal year, while there was a slight dollar decrease, uh, from the previous year, uh, nine million and $10,000 was approved in business loans from July 1st through March 31st.

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That's compared with 9,000,008 approved in business loans the previous year. I would like to point out that so far this year we have had 6,736,000 and participation loans with banks as against 5,800,000 during the prior fiscal year for the same period. Dick, tell us if you're just an ordinary small businessman in Florida, what do you have to do to qualify for a loan from the small business about businessman should do is to go to his local bank.

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If the local bank will handle alone then, of course, the government will not. But in some cases, because of the length of the lawn, that is the terms and maturity ease and in some cases, because of the fact that the bank does not have a sufficient capital and surplus to enable them to make the full loan.

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They will call on the S B A to participate, I might mention here, Senator, that bank participation is now comprised 66% of the total loans that applications that we're getting. This is up about 6% from the prior year, and it is very heartwarming to the administration to see this happen because our basic premise in this agency, as we have explained to banks throughout the country, is that we want to supplement bank credit.

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We are not in competition with commercial banks now. How does Florida rate in so far as using the facilities and getting the money? The Small Business Administration? Uh, in comparison with other states, Florida ranks knife in terms of both number of applications and also in terms of business loans approved.

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Now what kind of credit? What kind of resources does a man have to show in order to get some help in the Small Business administration? Man has to, of course, give us a financial statement, and we analyze the financial statement quite similar to the way a commercial bank analyzes a statement however we do, as I mentioned earlier, make longs for a longer term.

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But there does have to be a net worth and inequity in the business before we can make the long when you make it for a longer term. Does it also mean lower interest rates than a bank ordinarily lends money in? Our interest rate is, uh, set by statute, as you know, is 5.5%.

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This is slightly lower than commercial banks may be charging in certain areas. Uh, in, uh, in areas that are classified by the Area Redevelopment Administration, the rate is 4%. Is there any idea on the part of the Small Business Administration to do any additional work in Florida?

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What else do you do that's helpful to the people of Florida? I think the another program that there are two other problems that are of considerable interest. One is the investment division, which licenses and regulates small business investment companies. There are quite a quite a number of these in Florida.

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Well, let me just stop you right there and say to these good people, if there any further interested, they either must right, You're right. Me because our time is up. Thank you very much, Ladies and gentlemen, for looking in. I hope you're looking again at this same time next week.

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Okay? Yeah. Well, Mr Landman, how are these small business investment companies working out? Uh, it's hard to give a absolute answer to that question. We have a number of them that we think are doing an excellent job. In some cases, they have been having, uh, problems.

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As you know, there is some legislation that will be introduced as being introduced this session, which we think would be helpful in trying to cure some of the ailments. What was the purpose of the small business investment companies that to make credit more available to everybody?

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No, I don't I don't think it could be that that is the exact reason it was generally to make equity credit available to businesses that had growth possibilities and needed investment funds, but were too small to go to the investment market to get them. Have you observed in your position which is a exalted position with respect to the financial area?

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Have you observed that the banks, ordinary commercial banks as well as other lending institutions they're making available credit to the point where small business investment companies are not doing are not needed as they we once thought they were. I think the I think the impact of the banks making more credit available and this is certainly true has been more on the financial assistance program.

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Uh, instead of the f b. I C program. It has probably had some impact on the F B I C program, but it has certainly affected, uh, our loan application volume. Which is true, Economist, is that your judgment that this availability of credit is good for the country?

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Or are you fearful of inflation? Well, I'm not fearful in inflation, and I think that the the availability of credit, particularly in a small business area with which I'm concerned, is extremely important for the overall growth of the economy. Do you feel that small businesses maintaining its correct proportion in relation to our overall business?

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Or do you think that small businesses losing out to big business? Well, it's a constant. It's a constant battle, as you know, every year and almost the same some years, there were a few more that go out of business for one reason or another, I feel that the Congress of the United States was certainly 100% correct and enacting the small business legislation.

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I think it's most important. I think that small business does need to be fostered, doesn't and does need encouragement, which is what we do right. And I'm happy to be a member, that small business committee and working just on that problem, Let me ask you one question.

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Were greatly interested in in Florida. That's the Small Business Administration's participation in disaster areas. We had Hurricane Donna would swept through the keys and up through the western part of our state. Small Business Administration was very helpful. Tell us what it is you can do and what what needs to be done In order to be declared a disaster area whenever there is a natural disaster, the area after it's reviewed by our people can be declared a disaster area by the administrator, John Horn.

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After the area has been declared, we can make funds available at a 3% interest rate with a maturity of 20 years for, uh, anybody who has been injured by that disaster in this connection, we are not confined simply to business loans as we are in our regular program, but can land homeowners, businesses and without regard to the the size of the business or the amount of the loan.

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The only restriction is that the applicant must prove that the damage has occurred. Now, what kind of loans do you make to him and on what terms? Well, the terms as I mentioned all for 20 years, that's the maximum. We try to tie the terms into what he can capably repay.

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We will make loans to restore his house to restore his, uh, store. If that was damaged. And I might mention that in Florida we have so far made 10,492,000 in disaster loans. Thank you very much, Mr Landman, the deputy administrator, the small business administration for your comments and thank you very much, ladies and gentlemen, for listening.

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And I hope you're listening again at the same time next week.