Your Commercial Lending Updates for April 2020

Good morning to wary times of worry;

What to watch in 2020 – Unintended Consequences and Outcomes

Politics, ideology, or Small Business? Let’s hope – for the sake of our American Small Businesses and middle call working families – are their primary governing concern.

Daily, we read or view multiple headlines about this concern. Yet let’s praise our Small Business for proving they are most innovative, in quickly reacting to consumer fears about CoVid-19. You have to love the many food vendors, now offering take out and home delivery. Small business proves to be most creative and not easily defeated, as they hear their customers.

Unemployment rate: In the face of this Black Swan event, it is as expected – rising rapidly and big in numbers. The Good News: The Federal Reserve, our President and Congress are finally putting the people first. They are acting aggressively, not waiting to help bring an unprecedented recovery, to full strength. My bet is on you and the American spirit of success.

Home Refinances and Home Equity Loans: They will be huge the next few months. Please don’t wait. Start planning today. These are special rates and won’t last long. Act now, I believe our governments and Fed will keep supporting our economy and America working. But as we start the economy, rates will begin to rise as will the prime. Let’t talk soon, even today.

Act Now – Call today. Let’s lock in these rates.

Lower your payments and benefit from more cash in your pockets.

Commentary on stocks and bonds: With many quick and sharp moves, the market is beyond my risk tolerance. Suggestion: Wait for stability, as portfolio rotations are under constant re-evaluation, and at computer speeds. Keep in mind, for each share sold, more and more conservative money awaits on the sidelines. I will follow their lead and avoid high volatility.

Thinking of refinancing a balloon loan, investing in residential property, or in need of a sounding board – let’s talk. For many, now is a good time to refinance, to modify one’s commercial portfolio, or strengthen the balance sheet. If so, let’s start today while interest rates scream – take action now. How about reviewing the many advantages of a tax-deferred exchange? Give a ring or an email. What better way to explore your options and ideas.

Small Business Lending– Still in Business. Call us.

Sales continue. Yet be aware, I have heard of an appraisal having a “Covid-impact adjustment”. More conservative, yes, but valid? Time will tell, as markets adjust to our working at home. Might this mean less demand for office space? For me, home is home and not a work space.

At the same time, larger shopping centers may decide to remake their business model, as patterns of behavior shift. CoVid may accelerate such investment decision in technology enhancements and infrastructure. How these decisions will be funded is key to winning.

As expected, commercial lending is tight. Underwriters and credit committees are trying to read the tea leaves in assessing the quality of future cash flows – tenants and business practices. Will the banking industry shift or will it be patient, awaiting to see if consumers will return to what is most familiar? Let’s talk. I would appreciate your insight. as we discuss options.

In need of your action:

Expanding the funding of the PPP program is essential to any investment decisions. To have raised such hope and to then trash them, is unconscionable. It risks a loss in credibility, in unnecessary bankruptcy, and in interference with needed services. Let Congress hear your voice. If they don’t listen, voted them out in November. Act now.

As a broker, we are a glimmering light in the difficulties of commercial lending. We are able to effectively review the market for lending institutions – and partners – ready to lend. In this fast-shifting market, we are a good doorway to bringing your loan application to the best lenders. We are here for you and ready to work – today – trusting our lender can help you.

The value of getting it done right, versus solely choosing a lender based upon price.

Be well, take care of others, and together, this too, shall pass.

Many blessings for family and friends.

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