This is a response to a question asked by Mr. Miltenberger on February 13th, interest relief for business credit corporation loans.

Currently, there are 105 borrowers whose loan interest rates exceed eight percent. A general, across-the-board reduction equals approximately $300,000 in interest payment reductions. It is important to note that this estimate is based on the current rate of eight percent per annum over the next three fiscal years, and breaks down as follows:

Fiscal Year Savings to borrowers

1998-99 $150,000

1999-00 $110,000

2000-01 $ 40,000

The interest roll back means that the Business Credit Corporation will forego approximately $300,000 in interest revenues over the next three years. This amount will be reflected in the corporation's net income for that period.