The financial news out of Wall Street and Washington D.C. has been dire lately, however, noted economist Ray Perryman says that even in a slackening overall economy, businesses in the Hill Country should be able to weather the storm.

“Everyone is going to feel the effects of the financial situation. Credit is more difficult to come by for small businesses, mortgagees, and people seeking car loans,” said the president of The Perryman Group. “Housing activity has also slowed in Central Texas. Stock price declines affect Central Texans like anyone else.”

Having said all of that, Perryman maintains that area businesses should perform quite well, relative to other places in the country.

“The underlying economy has been exhibiting consistent growth, and many key sectors continue to expand,” he said. “The community banks in the region are strong and not significantly involved in sub-prime lending.” Because of their noted absence from the sub-prime lending game, the community banks in the Highland Lakes are generally well-capitalized and are able to lend.

Their lending practices of checking borrowers’ credit and asking for down payments hasn’t changed dramatically.

For full story, see The Highlander.