A Wall Street Journal article on ‘The Coming Crisis in Commercial Real Estate’ indicated $524
billion in overall commercial real estate loans will be maturing and needing refinance by 2013. It also noted that 2,500 banks
may fail in the next few years far outstripping the S&L and bank crisis or the last recession. This forecast is playing
out and we are in a protracted credit crunch. Due to stricter credit
standards borrowers need to place their best foot forward when seeking capital and utilize lender friendly loan programs such
as the USDA B&I program for rural business and property locations.
The USDA B&I
loan program had its biggest year and Congress is now being solicited to approve an annual loan budget in excess of the standard
$1 billion. Lenders now have their arms around their problem loans and are making steady progress. However, this will keep
many lenders frozen as they are in a capital raising mode and significantly slow others due to concentrations in their loan
portfolios. Well capitalized lenders will seek to to pick up market share but minimize risk. To conserve capital, serve customers
better, generate new fee income and mitigate risk more lenders will seek to become active in USDA B&I Government Guaranteed
SOLUTIONS FOR TODAY'S ECONOMY
Work With An Expert
Our industry leading expertise enables us to provide innovative loan structures and solutions to help you
place your very best foot forward. Our expertise,
wholesale banking approach and system to manage the total process of your loan is unique providing borrowers superior service.
Services That Provide The Most Effective Way To Start and Increase USDA B&I
We have designed
dynamic USDA B&I lending services to be highly cost effective and create immediate value for lenders. Please see our 'Lender
Solutions' web page for more details.