WILLIAM P. REYES

President

Kishacoquillas Valley

National Bank

Belleville, Pa.

Our small business loans are up about 16% in the last year. The demand has been fairly steady. Those businesses that are confident their revenue streams are big enough are taking advantage of interest rate environment.

And some of those that aren't are taking the opportunity to restructure their balance sheets and refinance their existing debt.

Once the uncertainty about tax rates is resolved, we will see an increase. It's not only economic issues that business owners are worried about, but policy issues also.

STEPHEN DUFILHO

President

Bank of San Antonio

Texas

There is still demand for credit to small businesses, particularly in our area of the country.

However, the quality of the prospective borrowers' balance sheets and income statements has been seriously affected by the poor economic conditions experienced in the late 1980s. The economic crises we endured over the past five-plus years has caused a number of changes, creating barriers to lending.

It will take some time, perhaps even years, for these bad memories to fade and our lending standards to be readjusted to accommodate these credit requests and hopefully permit character loans once more.

JAMES RYAN

Chief executive

Bank of Walnut Creek

Walnut Creek, Calif.

I don't think it's going to pick up until business people have some kind of confidence in terms of the administration in Washington.

Clinton is going to have to make some real steps toward reducing the deficit. If he doesn't, inflation is going to go up and interest rates will, soar and people just won't want to borrow.

I don't know that when the tax situation is resolved it's going to stimulate anything. If anything, it will retard it. Here in California, we have to wait until the economy turns around before anything happens to stimulate loan demand.

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