You don’t always find the executive of a major bank and tea partyists lining to bash the Republican state Senate. But that’s the case today.
Both are pointing to SB 448, sponsored by Senate Rules Chairman Don Balfour, R-Snellville, which they say would allow developers to escape payments on personally guaranteed loans for projects that have gone bust during the Great Recession.
Most impressive is a March 12 letter from BankSouth CEO Harold Reynolds that is making the rounds of the state Capitol today. In his letter, which can be read here, Reynold asks the House to halt the “disaster” contained in the Senate legislation. A couple excerpts:
If the Legislature can retroactively annul a guarantor’s promise to pay, then banks cannot make loans based on a borrower’s signature. That is one of the surest means to restrict needed capital for small business. Certainly, you know of many businesses started in a garage with a signature loan from a community bank. What will the Legislature