The Exhibitor (1956)

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loan authorizations are of the bank-par¬ ticipation type. Therefore, before a small theatre owner applies for a Small Business Administra¬ tion loan, he should talk the matter over with his banker. The Small Business Ad¬ ministration will not make a loan if private credit is available on reasonable terms. Your banker may suggest the possibility of a Small Business Administration par¬ ticipation loan, or maybe he is not in a position to advance any of his bank’s funds at all. In either case, a call on the nearest field office of the Small Business Administra¬ tion is then indicated. The financial spe¬ cialist will want to review the theatre’s past earnings record, and the owner’s financial standing. He will then be able to advise whether or not to file a loan application. If a loan application is submitted, the odds are that the exhibitor won’t have long to wait for a reply, if he does his part in furnishing the Small Business Ad¬ ministration the credit information it must have. An answer should be forth¬ coming in two or three weeks. If the Small Business Administration cannot work out a bank-participation loan, and if it appears that a loan is warranted and that the borrower will be able to pay it back on time, then it may advance the entire loan from Government funds — make a direct loan. In considering loan applications, the Small Business Administration gives weight to the earnings record, and pros¬ pective future earnings. Collateral is also required, for the law specifies that the loans shall be so secured as reasonably to assure repayment. But the Small Business Administration always tries to be of positive assistance. It takes the attitude that it was created Small Business Administration Regional and Branch Offices Editor’ s Note: For the first time, theatres are eligible for Federal loans through the Small Business Administration. This listing of branch and regional offices should be a part of every theatreman’s reference library. REGION I — Boston, Moss. 131 State Street Boston 9, Mass. REGION II— New York, N. Y. 1790 Broadway New York 19, N. Y. Branch Offices: Syracuse, N. Y., and Hartford, Conn. Chimes Building 500 South Salina Street Syracuse, N. Y. 70 Arch Street Hartford, Conn. REGION III— Philadelphia, Pa. Jefferson Building 1015 Chestnut Street Philadelphia 7, Pa. Branch Office: Pittsburgh, Pa. Fulton Building 107 Sixth Street Pittsburgh 22, Pa. REGION IV— Richmond, Va. 900 North Lombardy Street Richmond 20, Va. Branch Offices: Baltimore, Md.; Charleston, W. Va.; and Charlotte, N. C. Calvert Building Fayette and St. Paul Sts. Baltimore, Md. REGION V— Continued Pacific Building 327 Northeast First Avenue Miami 32, Fla. REGION VI— Cleveland, Ohio Federal Reserve Bank Bldg. 713 Superior Avenue Cleveland 1, Ohio Branch Office: Louisville, Ky. Federal Building Sixth and Broadway Louisville 2, Ky. REGION VII— Chicago, III. 226 West Jackson Blvd. Chicago 6, III. Branch Offices: Indianapolis, Ind.; Madison, Wis.; and Davenport, Iowa Federal Building Indianapolis, Ind. Woolworth Building 105 Monona Avenue Madison, Wis. Putnam Building 215 Main Street Davenport, Iowa REGION VIII— Minneapolis, Minn. Metropolitan Building Second Ave. at Third St. Minneapolis 1, Minn. Embleton Building 922 Quarrier Street Charleston, W. Va. Independence Building 102 West Trade Street Charlotte, N. C. REGION V — Atlanta, Go. Peachtree-Seventh Building 50 Seventh Street NE Atlanta 23, Ga. Branch Offices: Birmingham, Ala.; Memphis, Tenn.; and Miami, Fla. 704 North 22nd Street Birmingham, Ala. REGION IX — Kansas City, Mo. Federal Office Building 91 1 Walnut Street Kansas City 6, Mo. Branch Offices: Omaha, Nebr.; St. Louis, Mo.; and Wichita, Kans. Federal Office Building 15th and Dodge Streets Omaha, Nebr. New Federal Building 1114 Market Street St. Louis 1, Mo. Bitting Building 107 North Market Street Wichita, Kans. Falls Building 22 North Front Street Memphis, Tenn. REGION X— Dallas, Tex. 1114 Commerce Street Dallas 2, Tex. REGION X— Continued Branch Offices: Houston, Tex.; New Orleans, La.; Oklahoma City, Okla.; and Little Rock, Ark. Federal Office Building Fannin and Franklin Sts. Houston 14, Tex. Masonic Temple Building 333 St. Charles Street New Orleans 12, La. Bankers Service Life Bldg. 114 North Broadway Oklahoma 2, Okla. U. S. O. Building 217 Main Street Little Rock, Ark. REGION XI — Denver, Colo. New Custom House 19th and Stout Streets Denver 2, Colo. REGION XII— San Francisco, Cal. Flood Building 870 Market Street San Francisco 2, Cal. REGION XIII— Seattle, Wash. Burke Building 905 Second Avenue Seattle, Wash. Branch Offices: Helena, Mont., and Portland, Ore. Federal Office Building North Park Avenue and West Lawrence Street Helena, Mont. Old U. S. Court House 520 Southwest Morrison S;. Portland 4, Ore. REGION XIV— Los Angeles, Cal. Western Pacific Building 1031 South Broadway Los Angeles 15, Cal. REGION XV— Detroit, Mich. U. S. Post Office and Court House 231 West Lafayette Blvd. Detroit 26, Mich. to help small firms, and whenever it is assured that a loan will benefit the small firm and also the economy of the town or city where the firm is located, then it will make the loan if it can possibly do so. To date the Small Business Administra¬ tion has approved more than 4,500 loans to small firms for more than $204,000,000. Although no loans have yet been approved for “four-wall theatres,” the way has now been cleared for this type of loan. Some Questions And Answers A recent meeting of the Indepen¬ dent Theatre Owners of America gave exhibition a chance to become better acquainted with a recent directive of the government’s Small Business Administra¬ tion encompassing theatres and theatre operations. Arthur E. Long, regional director of the SBA, was on hand to answer inquiries. Question: Fifteen years ago I purchased a theatre for $250,000. I paid $75,000 in cash and got a mortgage for $175,000. The mortgage expires next year and I still owe $75,000, having paid off $100,000. The bank will insist on full payment next year. I have tried to get other bank loans but have been turned down. Can the SBA help? Answer: The SBA is limited by Con¬ gress to make loans up to $250,000 — larger amounts are permissible if banking institu¬ tions participate partially. To qualify, re¬ ceipts must total less than one million dollars in gross returns annually. There is a 10 year time limit on loans, and there must be collateral as well as an ability to repay out of earnings. All other sources of financial help must first be exhausted. If these conditions can be met, then the above is eligible. Question: If the theatre in question is making a slight profit but can make more through rehabilitation of the theatre could a loan be secured? Answer: Yes, if there is collateral. Question: If the theatre owner holds only a lease, can he get a loan? Answer: He cannot get a loan if he has no collateral to put up. Question: If the lease-holding exhibitor owns the equipment in the theatre out¬ right, can this be used as collateral? Answer: He would be eligible for a limited loan up to $15,000 limit, and a bank has to participate in at least 25 per cent of the amount. Question: I have a mortgage which is due to expire next year. Can money be advanced to me for rehabilitation before the present mortgage expires? Answer: Yes, if the other qualifications are met. Question: What is collateral? Answer: Real estate, physical property, stocks, bonds, etc. Question: Would individual officers of a corporation have to guarantee repay¬ ment? Answer: This would depend in part on the type of collateral put up. Question: Would the SBA provide funds for competitive bidding? Answer: This does not fall into the long-term loan category and would be a “hit and run proposition.” The answer is no. Question: Does the term of the loan depend on the purpose? Answer: Yes. A long term is permitted ( Continued on page PT14) FT6 PHYSICAL THEATRE DEPARTMENT of MOTION PICTURE EXHIBITOR December 5, 19 56