"Let Them Make Mudpies" (July) was of particular interest to our firm, since our only function is the funding of SBA guaranteed loans.

As a lender I was left with many questions about the company, Imre; the "expert," Mr. Glover; and the bank, Rainier National Bank. The main question was, If the loan had such merit, why didn't Rainier just make a direct loan to the borrowers without benefit of an SBA guarantee?

I believe that a businessperson, reading the article without knowledge of the SBA's structure and guidelines, would be left with a sour taste for possible use of SBA financing. This point is unfortunate. We at ITT Small Business Finance Corp. have submitted many loan applications to the SBA, and our experience nationwide has been good. We have submitted loans in varied industries and the SBA has attempted to understand and provide funding for each, if, in fact, the loan could be justified on the basis of the information submitted by both the borrower and the lender. A recent loan, submitted and rejected on three occasions, was placed through the appeal process and eventually approved. The industry involved was technical in nature and highly competitive. However, the SBA made every attempt to understand and justify the loan, and after about four months of work, it authorized the borrowing.