I'm in my local library and I'm reading the New Hampshire Business Review about the bankruptcy of Berlin based Issacson Structural Steel Inc. and some of the details that are emerging about this quality employer in a very distressed area of New Hampshire.
They're underwater. They owe about double what their cashflow and asset capabilities are the owners have injected their own money to keep this concern and the jobs going and the future looks like a combination of risk, speculation and bridge loans to get them to dry land. That is if the lawyers and the courts don't get them first. Tough proposition in shark infested waters.
Not that you're wondering but what does the NH Business Finance Authority have to do with what I've just said. Well, from what I'm reading is that Issacson Structural Steel wants a State Loan Guarantee to support its survival. So I'm reading this bailout idea and its implications to NH taxpayers and my mind starts moving in two directions, or at least it tries to move in two directions I'm in a public library and a infant is now screaming, most incredible set of lungs I've seen one of the librarians is surveying the scene, "what to do next?" Lets move on:
Deny the State Loan Guarantee- Business is tough. Survival of the fittest. New Hampshire is in no position to be offering loans to any business that is in this situation. Respect for capital.
Keynesian Thought- Approve the State Loan Guarantee. Issacson Structural Steel is a quality employer in a region that needs businesses like this one. The market for steel will come back and if given the chance this company has the potential and experience to be successful. I'm confident Jack Donovan and the BFA would keep the risk exposure to New Hampshire and the taxpayers to a minimum.
What to do next?
If Issacson Structural Steel fails think more unemployment and hardship compared with a risk loan that might be the difference that is needed here. I still think this is a tough call. Especially when the ship is clearly sinking...
But if it were my call I'd approve the state loan guarantee. It's about leadership, it's about jobs its about New Hampshire supporting its own.