reason that a long-term working capital loan wotild be 

 unattractive to thano One of the banks, however, agreed 

 to establish a $hOO,000 short-term line of credit on 

 receivables and inventory provided the firro coTild either 

 raise $1^0,000 in new capital or Reconstruction Finance 

 Corporation would make a term loan in that amount » The 

 barjc expressed entire satisfaction with previous loans 

 to the firm, and was confident of the capabilities of 

 its management. The firm was unable to raise outside 

 capital, and the loan was authorized by Reconstruction 

 Finance Corporation tinder its regular business loan 

 authority. 



2. A loan of $350,000, to be made by a bank, with a ^0 per- 

 cent deferred participation by Reconstruction Finance 

 Corporationo The borrower, originally established over 

 UO years ago, is a canner and processor of tuna, sardines 

 and other fish, and also produces fish meal and oilo The 

 loan is for a 10=year temu The application was brought 

 by the bank to Reconstruction Finance Corporation<, The 

 amount of the loan would have far exceeded 10 percent of 

 the banks' capital and s\irplus<, 



3. A loan of S5»?00 to a veteran, to assist him in the 

 p-urchase of a fishing boat for salmon, tuna and crab, pay- 

 able in 5 yeaiTS, Two Washington banks from ttiom the 

 credit was requested were not interested in making 

 fishing boat loans of this typeo The loan was partially 

 guaranteed by Veterans" Administration o 



ko A loan of $Li00,000 to a California tuna and sardine packer. 

 The applicant will use $300,000 for operating capital and 

 $100,000 for new equipment and machinery. His request was 

 declined by two banks because of its capital nature and 

 long maturity. However, one of the banks will make avail- 

 able up to $3^0,000 for current packing operations. 

 Applicant has been in business over 30 years, and has been 

 a valued ciastoraer of this bank for many years. 



$. A 5-year loan of $10,000 to apply on the cost of completing 

 and equipping a commercial fishing boat for salmon and tuna. 

 Three Washington banks declined because they are not making 

 long-term fishing boat loans at this timeo 



418 



