By State Sen. Greg Goggans
One of the areas hardest hit by the current economic recession has been our state-chartered banks, especially when it comes to their lending ability. Georgia’s banks are only allowed to lend up to 15 percent of their total capital to any one borrower. In a poor economy their capital has declined, lowering their lending limits and creating a negative atmosphere for investment and business growth. Georgia’s current lending laws have had the unintended consequence of preventing banks from renewing loans, even with their best customers. This punishes banks by forcing them to turn away business and it hurts borrowers who are meeting their obligations. Those borrowers then must take costly time and resources to seek out additional credit in this slow market, many who rely on these loans just to stay afloat. Continue reading “South Georgia at the State Capitol”