Re: the June 7 article "Program working to connect small businesses with alternative lenders."
It is outrageous to read that up to 80 percent of Arizona small businesses cannot get loans from commercial banks because they lack hard collateral or the loans are deemed to be too small. The 18 mostly Wall St. banks operating in Arizona hold more than $100 billion in deposits.
Yet, the chambers of commerce have to get Arizona Congressman David Schweikert involved to find non-bank financial institutions to lend to Arizona small businesses at premium rates. Rep. Schweikert gives them a free pass due to burdensome regulations and their inability to “paper their file in the traditional fashion” — whatever that means.
Clearly, Wall Street banks are failing Arizona. It is high time the Arizona Department of Financial Institutions and the State Treasurer advocate for Arizona small businesses and the jobs they create by demanding that these banks stop the one-way flow of capital out of Arizona or create a public bank that will do the job.
James Hannley
Midtown
