[Loans to Small Business] [From the U.S. Government Publishing Office, www.gpo.gov] FOREWORD In carrying out the purpose of the Act creating the Smaller War Plants Corporation, it is our policy to encourage local banks to make loans direct to small business concerns engaged in war or essential civilian production. If for some special reason a bank is unable to make a particular loan, the Corporation may arrange the loan directly and invite the bank to participate. The Corporation gives primary consideration to the urgent war or essential civilian need of the product to be manufactured and to the managerial and productive capacity of the small business concern. Where the product is needed and the manufacturer requires financing, our Loan Bureau provides assistance so that the war contract may be completed on schedule. This pamphlet describes our services to the small plant owner. It is published to acquaint small business with these services, thereby helping them make the greatest possible contribution to the Nation’s war effort. Maury Maverick, Chairman and General Manager, Smaller War Plants Corporation. Board of Directors A. M. Carter J. A. R. Moseley J. T. Howington S. Abbot Smith L Our Government’s solution to t some problems of small business 2 do you need ? Additional Capital? Plant Expansion? Machinery? Materials? Contracts? Technical Assistance? 3 THE SMALLER WAR PLANTS CORPORATION is an agency of the Federal Government created by unanimous vote of the Senate and House of Representatives on June 11, 1942. The purpose of the Agency is to increase small-plant production of war and essential civilian goods. Its duties are: £ 1. To make or participate in loans. (¿7) To finance plant construction, conversion, or expansion. (¿) To finance the purchase of equipment, machinery, supplies, or materials. (c) To supply capital to be used in the manufacture of articles, equipment, supplies, or materials for war or essential civilian purposes. 7 r 0 2. To acquire machinery, equipment, plants, and other facilities and lease them to small business concerns engaged in production for war or essential civilian purposes. 0 3. To assist in obtaining war contracts through Government agencies and private industries. £ 4. To assist in securing priorities and materials for and to protect the interest of the small concerns engaged in war work. 0 5. To obtain access to patents held by the Alien Property Custodian and to new products and ideas submitted to other Government agencies. £ 6. To assist in solving research problems. 0 7. To assist small concerns in securing machine tools, production equipment, goods, and materials. This booklet explains: HOW TO OBTAIN FINANCIAL AID AND OTHER ASSISTANCE 4 J What financial assistance can 1 be obtained,, < There are several types of financial assistance available—all at minimum interest rates. £ PARTICIPATION LOAN ... Immediate Participation in a Bank Loan Under this plan, Smaller War Plants Corporation purchases à certain percentage of a loan to to be made and serviced by a bank. (b) Immediate Participation in Smaller War Plants Corporation Loan Under this plan, the Corporation sells to a bank an immediate participation in a loan made and serviced by Smaller War Plants Corporation. (c) Deferred Participation Loan This type of loan is made and serviced by the bank and Smaller War Plants Corporation agrees to purchase at a unpaid later date, if requested, a certain percentage of the amount of the loan. REPURCHASE U BANK LOAN.. This type of loan is somewhat similar a deferred participation plan with the exception that Smaller War Plants Corporation agrees to purchase from the bank the entire balance due on the loan upon 15 days’ written notice upon demand by the bank. The loan cannot exceed $25,000. The bank makes and services the loan. 5 O O O g DIRECT LOAN ... A Direct Loan is a loan made by Smaller War Plants Corporation to a small business concern without any other lending agency or banking institution participating. In some cases the small concern may need certain pieces of machinery or a building, in order to economically and efficiently carry out certain contracts awarded to him. Smaller War Plants Corporation, where the conditions warrant it, will lease these facilities to the concern. The rental charges are usually slightly in excess of the normal rate of depreciation on the equipment or property for the time it is used. S.W.P.C. is ready to help you 1 Increase your working capital. 2 Construct, convert, or expand plant facilities. 3 Buy buildings, machinery, and equipment. 4 Finance production contracts. 6 Repayment schedules Loans for acquisition of facilities: Security.—Buildings, machinery, and other facilities. Repayment —1-5 years, planned to fit applicant’s ability conveniently. Loans for working capital on amortization basis : Security.—Liens on real estate, machinery, warehouse receipts, inventories, assignment of receivables. Repayment.—Planned to assure adequate funds for applicant1 s continued operation. Production loans : (Partial disbursements where needed. ) Security.—Assignment of the contract. Repayment.—Based on payments of invoices covering shipments. YOU can secure financial assistance if... • Your goods are needed for war or essential civilian purposes... • You have facilities available for production... • You have proven ability to produce... Your character and personal standing in your community plus your record as a businessman and y OUT ability to produce are of primary importance in obtaining financial assistance. 7 Where to apply for S. W. P. C. Assistance Field Offices of the Smaller War Plants Corporation... 0 REGION I—Boston, Mass. (Regional Office, 17 Court Street). Bridgeport, Conn., 144 Golden Hill Street. Hartford, Conn., 119 Ann Street. New Haven, Conn., 152 Temple Street. Portland, Maine, 142 High Street. Lowell, Mass. (Br. Office), 8 Merrimac St. Springfield, Mass., 1200 Main Street. Worcester, Mass., 340 Main Street. Manchester, N. H., Amoskeag Indust. Bldg. Providence, R. I., 631 Industrial Trust Bldg. Montpelier, Vt, 84 State Street. • REGION II—New York, N. Y. (Regional Office, 350 Fifth Avenue). Newark, N. J., 20 Market Place. Albany, N. Y., 112 State Street. Brooklyn, N. Y., 16 Court Street. Buffalo, N. Y., 808 Rand Building. Rochester, N. Y., 723 Commerce Building. Syracuse, N. Y., 224 Harrison Street. Utica, N. Y., First National Bank Building. 8 • REGION III—Philadelphia, Pa. (Regional Office, 1612 Market Street). Wilmington, Del., 406 Penn Building. Baltimore. Md., 1114 O’Sullivan Building. Trenton, N. J., 622 Broad St. Bank Bldg. Allentown, Pa., 412—514 Hamilton Street. Harrisburg, Pa., 713 Blackstone Building. Reading, Pa. (Suboffice of Allentown), Fifth and Penn Streets. Scranton, Pa., 418 First Natl. Bank Bldg. York, Pa. (Suboffice of Harrisburg), York-towne Hotel. Richmond, Va., 101 Richmond Trust Bldg. • REGION IV—Atlanta, Ga. (Regional Office, 116 Candler Building). Birmingham, Ala., Phoenix Building. Jacksonville, Fla., 314 West Monroe Street. Miami, Fla., 707 Congress Building. Jackson, Miss., Tower Building. Charlotte, N. C., Charlotte Law Building. Chattanooga, Tenn., James Building. Knoxville, Tenn., 203 Fidelity Bankers Trust Building. Memphis, Tenn., Sterick Building. Nashville, Tenn., 314 Stahlman Building. • REGION V—Cleveland, Ohio (Regional Office, 1717 Union Commerce Building). Louisville, Ky., 200 Todd Building. Akron, Ohio, 605 First Central Tower Bldg. Canton, Ohio, 721 First Natl. Bank Bldg. Cincinnati, Ohio, 34 East Fourth Street. Columbus, Ohio, 145 North High Street. Dayton, Ohio, 129 South Ludlow Street. Lima, Ohio, Colonial Finance Building. Youngstown, Ohio, 904 Union National Bank Building. Erie, Pa., 418 Commerce Building. Johnstown, Pa., United States National Bank Building. Pittsburgh, Pa., 801 First Natl. Bank Bldg. Charleston, W. Va., 614 Atlas Building. Clarksburg, W. Va., Union National Bank Building. Huntington, W. Va., 309 West Virginia Building. Wheeling, W. Va., Fidelity Building. • REGION VI—Chicago, Ill. (Regional Office, 226 W. Jackson Boulevard). Decatur, Ill., 339 Standard Office Building. Peoria, Ill., 1103 Alliance Life Building. Rockford, Ill., 722 Gas and Electric Bldg. Evansville, Ind., 1 Koenig Building. Fort Wayne, Ind., 216 Utility Building. Indianapolis, Ind., 1027 Circle Tower Bldg. South Bend, Ind., 510 Sherland Building. Davenport, Iowa, 712 Kahl Building. Des Moines, Iowa, 808 Liberty Building. Eau Claire, Wis., 128^ Graham Avenue. Green Bay, Wis., 206 Main Street. Madison, Wis., 403 Washington Building. Milwaukee, Wis., 161 West Wisconsin Ave. Wausau, Wis., First American State Bank Building. 0 REGION VII—Kansas City, Mo. (Regional Office, 600 Interstate Bldg.). Little Rock, Ark., 312 Pyramid Building. Wichita, Kans., 1415 Union National Bank Building. Kansas City, Mo., 500 Mutual Building. St. Louis, Mo., 907-915 Paul Brown Bldg. Omaha, Nebr., 815 City Natl. Bank Bldg. • REGION VIII—Dallas, Texas (Regional Office, 507 Mercantile Bank Building). New Orleans, La., 443 Canal Building. Oklahoma City, Okla., 442 Key Building. Tulsa, Okla., 512 Petroleum Building. Houston, Tex., 1006 Electric Building. San Antonio, Tex., 1903 Transit Tower. • REGION IX—Denver, Colo. (Regional Office, Continental Oil Building). Albuquerque, N. Mex., 103^2 West Central Avenue. Salt Lake City, Utah, 313-14 Atlas Bldg. 0 REGION X—San Francisco, Calif. (Regional Office, 1355 Market Street). Boise, Idaho, 210 Capital Securities Bldg. • REGION XI—D étroit, Mich. (Regional Office, 710 Boulevard Bldg.). Grand Rapids, Mich., 310 Keeler Bldg. Saginaw, Mich., 606 People’s Building and Loan Association. Toledo, Ohio, 800 Security Building. • REGION XII—Minneapolis, Minn., (Regional Office, 720 Hodgson Bldg.). Duluth, Minn., 310 Christie Building. Fargo, N. Dak., 402 Universal Building. Sioux Falls, S. Dak., 307 Western Sur. Bldg. • REGION XIII—S e a 111 e, Wash., (Regional Office, White-Henry-Stuart Bldg.). Portland, Oreg., 608 Bedell Building. Seattle, Wash., 4454 Stuart Building. Spokane, Wash., 202 Sun Life Assurance Building. Helena, Mont., 221 Power Block. • REGION XIV—Los Angeles, Calif. (Regional Office, 1031 South Broadway). Phoenix, Ariz., 426 Security Building. Your application for financial aid is judged entirely on its own merits. It is unnecessary to come to Washington. Apply at nearest SWPC office. 9 What happens when you appl^i General Loan Policy of S. W. P. C.— In considering applications for financial assistance filed with them, the loan agents of the Smaller War Plants Corporation analyze each case and make a determined attempt to arrange a loan or lease if the circumstances justify it. The principal factors to be weighed are the need for goods being produced and the managerial ability of the applicant If these factors are favorable, then some satisfactory basis can usually be worked out for the making of the loan or lease. 10 for financial assistance t Loans for $25,000 or less are approved and disbursed by the Regional Loan 4 Agent. Loans for more than $25,000 and all leases are approved by the Board of Directors. Each application is considered in relation to the importance of the product, the structure of industry of which the plant is a member, the volume and the value of production, character of ownership, and eligibility of an applicant. The Smaller War Plants Corporation will not finance purely promotional projects, nor will it finance research or development projects or experimental work of any kind. Smaller War Plants Corporation supplements rather than competes with established banks or other lending institutions. 1t MILLION DOLLARS MILLION DOLLARS 12 SIZE OF APPROVED APPLICATIONS FQR FINANCIAL ASSISTANCE (CUMULATIVE THROUGH -MARCH 31, 1944) amOGnt of 1 ASSISTANCE $10,000 or less $10,001 to $25,000 $25,001 to $50,000 $50,001 to $100,000 $100,001 to $200,000 over $200,000 SIZE OF CONCERNS RECEIVING FINANCIAL ASSISTANCE > 100 or less employees 101-500 employees over 500 employees 1 % only Each symbol represents 5% of all approved applications Each symbol represents 5% of all concerns receiving financial assistance 13 Use of Financial Assistance OPERATING CAPITAL 60.4% MACHINERY 19.5% SUPPLIES 8.3% DEBT RETIREMENT 8.1% L OTHER 3.71 To sum up... If you need financial assistance and if you produce war materials or essential civilian goods... Apply to your nearest Smaller War Plants Corporation FIELD OFFICE. The staff of the Loan Bureau and all employees of the Smaller War Plants Corporation will receive you courteously and try to help with your financial and technical problems. Smaller War Plants Corporation employees have been selected because of their specialized experience with small business. They have sympathetic understanding and keen appreciation of your problems. They are anxious to help you 14 Otherjservices ofORC. ★ TECHNICAL ASSISTANCE—A technical Advisory Service provides advice on technical production problems of war material and essential civilian goods. ★ PATENTS—The same Service helps to obtain access to patents held by the >Alien Property Custodian and to possible new products and inventive ideas submitted to other governmental agencies. ★ MATERIALS —Smaller War Plants Corporation assists in obtaining priorities and allocations of necessary materials. * CONTRACTS —Smaller War Plants Corporation rendërs help in procuring contracts from the War and Navy Departments and other procurement agencies, as well as from prime contractors. ★ PROTECTION OF SMALL BUSINESS—Smaller War Plants Corporation studies proposed Federal legislation in the interest of small business concerns. It appears before other Government agencies as the next friend of the small businessman under all circumstances. ★ SURPLUS WAR PROPERTY AND EQUIPMENT—The Corpora-tion seeks to assist small business in obtaining surplus Government war property, machinery, and equipment where it is needed in connection with the war effort. ★ POST WAR PLANNING—Through the membership of Chairman Maury Maverick on the Joint ^Contract Termination Board and on the Surplus War Property Policy Board, the Corporation is in a position to represent the interests of small business in surpluses and contract settlements. FOREIGN MARKETS—Smaller War Plants Corporation cooperates with other Government agencies to develop methods by which small manufacturers can receive a fair share of foreign trade now and in the future. 15 On THE front cover of this report appears the New Seal of the Smaller War Plants Corporation. With the exception of the words in the outer rim and on the base of the Pyramid, it is identical with the reverse side of the Great Seal of the United States. Although the Great Seal was officially adapted bv the Continental Congress in 1782, this is the first time the reverse side has been used as a Seal. Its symbolism is little known to the general public, although it appears on all dollar bills. The Pyramid in thirteen layers represents the New Republic. "Novus Ordo Seclorum” means The New Order of the Ages. "Annuit Coeptis” indicates the new republic was favored by God. The Eye of God is shown at the top of the Pyramid. This Seal was adopted by the Corporation because: 1. The incompleted Pyramid was a symbol set by Congress to mean the Nation would always expand under the Eye of God. Therefore, we have adopted it as symbolical of small business and free enterprise which must always expand. 2. The Smaller War Plants Corporation is charged by Congress with representing small business and free enterprise. 3. The Pyramid signifies "Strength and Duration.” The strength and duration of small business is the foundation of our American way and must be preserved. 4. Our official Seal expresses the credo of the Corporation in representing the small business interests of the Nation. U. s. GOVERNMENT PRINTING OFFICE 16—40053“!