Kansas City roundtable spotlights small firms’ cash‑flow and lending barriers
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Summary
Small-business owners at a House Small Business Committee roundtable in Kansas City told members that tight bank underwriting, delayed payments and rising reporting requirements constrain cash flow and slow projects; Chair Roger Williams cited recent SBA changes and Made-in‑America rules as partial remedies.
At a bipartisan House Small Business Committee roundtable at the World War I Museum in Kansas City, local small-business owners and civic leaders pressed lawmakers on access to capital, saying lending practices and payment delays are choking growth.
“Access to capital is probably number one,” Eric Bergrude of the Greater Kansas City Chamber said, summarizing what members told the chamber. Will Reuter, representing the Home Builders Association, said large housing projects now require more patience from lenders because developers face two‑year waits to break ground, leaving capital tied up and raising costs. “You’ve got two years of capital being held from either a depository institution or a set of investors,” Reuter said.
Jeff Martin, who owns Martin Underground, described cash‑flow pressure in construction: customers delay payments for months, he said, forcing firms to front payroll and other costs. “I’m looking at my receivables. What’s coming in today? Gotta make payroll today,” Martin said, adding that lenders often require matching assets or deposits as collateral, even from longstanding customers.
Chairman Roger Williams pointed to recent committee work to ease lending constraints, including increases in SBA‑backed loan limits and “Made‑in‑America” provisions that aim to strengthen domestic manufacturing. “We switched … from $5,000,000 to $10,000,000 in loan availability,” Williams said, arguing higher caps can help businesses start and expand.
Panelists urged additional steps to connect small firms with loan products suited to uneven cash flow and recommended more outreach from community development financial institutions and Small Business Development Centers to help applicants complete stronger loan packages. Several also urged banks to take measured, longer‑term risk on local projects rather than requiring full collateral up front.
Next steps: panelists and members agreed to carry examples and proposals back to Washington for possible policy work and additional outreach to local lenders and technical‑assistance providers, rather than promising immediate statutory fixes.
Sources: statements and exchanges at the committee’s Kansas City roundtable, including remarks by Will Reuter; Jeff Martin; Eric Bergrude; and Chairman Roger Williams.