St Louis Commercial Lending Groups Warn Small Business Loans Drying Up


St Louis Mortgage and Real Estate News –

St Louis Commercial Loan News: St Louis Commercial Financing Warns Small Business Administration Almost Broke
Commercial and Home Mortgage Loans | Principal Reductions
877-334-0210 or 314-334-0210 | Floyd Tapia


This is no time for money to be running out within the Small Business Administration programs but the reality is… it is happening again according St Louis commercial loan experts.

This new warning is being exclaimed loud and clear at small business owners reporting that the SBA is opening up its Recovery Loan Queue for the fourth time in recent years.

For over a year now, the SBA has used funding first allocated from the 2009 Recovery Act to temporarily reduce fees for commercial borrowers.

This would also give the banks more security as far as the guarantees banks receive on loans made possible through the Small Business Administration’s lending programs.

But once again the funding for their programs ran out in November of 2009.  Thus, it is by means of temporary extensions that keeps the agency’s lending pursuits in place.

So, as it goes, each time their funding runs out, the SBA re-opens their Recovery Loan Queue to track applicants in hopes of collecting the last few remaining dollars owed.

This recent authorization for lending incentives expired at the end of May and sad to say the money was exhausted before that date.  And when the well goes dry, the scrambling begins for lenders.

“It certainly puts a lot of strain on the whole process,” said David Bartram, an executive vice president for Seacoast Commerce Bank in Chula Vista, California who is in the SBA division.

As money becomes more restrictive, this creates a lending atmosphere where losing the agency’s fee waiver can make a small business loan thousands of dollars more expensive for the borrower.

This will increasingly make loans harder to get for some business owners since most banks are only willing to make these riskier loans available if and only if they can get the higher guarantees provided by the SBA.

Lynn Ozer, executive vice president of government lending at Susquehanna Bank made a valid point when she said that “nothing gets through Congress easily these days, even bipartisan legislation.”

And although SBA lending is still a small part of the overall lending equation, it is still considered one of the ‘few bright spots in an otherwise barren credit landscape.’

In fact, a recent government report estimated that the Small Business Administration programs account for approximately 4 percent of all small business commercial financing in the nation.

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Articles and News Sponsored by Liberty Lending Consultants

When applying for any type of St Louis mortgage, always discuss your options with a top St Louis mortgage broker. Call Liberty Lending Consultants, the recognized St Louis refinancing and home loan experts, at 314-336-9111 and ask for Steve Swan or Doug Stahlschmidt.

For business owners looking for St Louis commercial loans and alternative financing that works both locally and nationally, call Floyd Tapia, host of the St. Louis “Mortgage Minute” at 877-334-0210 or 314-334-0210.

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