GE Capital pulls gun store funding
The move, said a GE Capital spokesman, expanded on a policy established in 2008. That year, GE Capital stopped offering new consumer financing for purchases of guns from gun shops, but existing relationships with gun shops were grandfathered in and those programs continued.
Fewer than 75 retailers are affected by the recent policy change, a fraction of 1 per cent of gun retailers in the US, said the spokesman, Russell Wilkerson.
The terminated financing programs, as a business, were "immaterial" to the company, he said.
The lending cutoff applies only to retailers whose primary business is selling guns. GE Capital is still offering financing to other retailers who sell many kinds of merchandise, including guns. Those retailers range from Wal-Mart to sporting goods chains.
The move by GE Capital comes in the aftermath of the school shooting in Newtown, Connecticut.
General Electric, the giant industrial and finance company, is headquartered in Connecticut, and some employees have children at Sandy Hook Elementary School, where the tragedy occurred.
Adam Lanza, the Sandy Hook gunman, was the son of Peter Lanza, an executive at GE.
Frequently Asked Questions about this Article…
GE Capital, the lending arm of General Electric, stopped offering consumer financing programs to US retailers whose primary business is selling guns. The company said the move expanded a policy first set in 2008.
GE Capital said fewer than 75 retailers were affected — a fraction of 1 percent of gun retailers in the US.
No. The cutoff applies only to retailers whose main business is selling guns. GE Capital continues to offer financing to other retailers that sell a wide range of merchandise, including Wal‑Mart and sporting goods chains.
According to GE Capital's spokesman, the financing programs that were ended were 'immaterial' to the company, indicating they were not a significant part of GE's overall business.
GE Capital said the change was in response to 'industry changes, new legislation and tragic events.' The company linked the move to the broader context following the school shooting in Newtown, Connecticut.
In 2008 GE Capital stopped offering new consumer financing for gun purchases from gun shops but grandfathered existing relationships. The recent action expanded that earlier policy by ending financing programs tied to gun‑shop retailers.
General Electric is headquartered in Connecticut, and the company noted some employees have children at Sandy Hook Elementary School. The article also reports that Adam Lanza, the Sandy Hook gunman, was the son of Peter Lanza, an executive at GE.
Based on GE Capital's statements, the ended financing programs affect only a very small number of retailers and were described as 'immaterial' to the company, suggesting limited direct financial impact. Investors monitoring reputational or policy shifts may still want to note the company's response to social and legislative developments.
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