Small businesses in the UK bemoan the insensitivity of the big banks in face of the grinding recession, but things are no better across the Atlantic if you are a technology company. A survey of almost 300 privately owned high technology companies by the American Electronics Association shows a dramatic negative change in bank-lending policies towards technology companies. The survey was conducted to confirm the results of a recent proprietary report commissioned by the Association from the First Financial Banc Corp revealing the same changes in bank attitudes. The Washington-based lobby found that almost 50% – 62 – of the 126 responding companies with turnover of $50m or less said that bank financing was difficult to obtain in 1991 and 50 reported that they were denied bank financing. The report had shown that just 34 of 100 banks with a history of high technology lending currently indicate a willingness to lend to electronics companies and eight of these now apply more stringent lending criteria to technology firms than they did a year ago. Another 18 profess to be high tech lenders but are so vague in their commitment as to be questionable sources of financing, and only eight of the 34 have demonstrated expertise in high tech lending, the First Financial report found.
