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I I I I I I I I I I I I I I I I I I 002203 4. Availability of Investment Capital The Bureau of Outdoor Recreation conducted a survey, Financing of Private Outdoor Recreation, Dept. of the Interior, Bureau of Outdoor Recreation, May 1967, to evaluate the demand and availability of private credit for enterprises that provide outdoor recreation. A preponderance of lending institutions surveyed admitted a lack of understanding of the economics of outdoor recreation enterprises. Information is lacking concern- ing the demand for the services of such enterprises and their profitability. One idea expressed was that if the government could provide basic technical assistance and generate the needed economic data, the lending institutions would finance any sound loan without requiring loan insurance or loan programs. The primary concerns of the lending agencies are: (1) limited seasonal and nonessential nature of the enterprise, (2) limited managerial ability of the promoters, (3) the effects of a depressed economy upon such enterprises, and (4) limited downpayment available by loan applicants. The principal conclusions of the survey are that all lending agencies consider outdoor recreation enterprises to be more risky than average (and credit should be made more readily available for financing outdoor recreation enterprises). Finan- cial institutions favored the creation of a participating loan program over a loan insurance program, The Bureau of Outdoor Recreation prepared a report entitled Federal Credit for Recreation Enterprises, Department of the Interior 10 ~- ~" ~-~.