The Rules Have Changed - Expectations Have Not

The money lending rules have changed.
Businesses'/People's expectations have not.

Banks will not lend money for business purposes unless the borrower is a financially strong owner user.

There are alternative sources of money available from private and non-depository lenders. These sources have money available and make money only by lending money BUT their underwriting is strict and their fees are perceived to be high.

The fact is that their fees are no higher than regular banks. They do not hide their fees like banks do.

These lenders can refinance and do not require or want the operating account. Banks do not want the loans but want the operating accounts.

Some loans available in this market are as follows

SBA back loans - Banks offer these loans often as a last resort and more often than not do not know how to handle them. These loans have true 20 year amortization w/no call. For Owner - Users.

Interest only - 3-5 years 6%-7% interest. Up front fees 4%-5% 75%-80% LTV

Interest only - SECOND POSITION - 3-5 years - interest rates 12%-14% - fees 4%-6%

Bank type loan - 20-30 yr amortization - 3-5 year call 6%-7% interest Fees 2%

Rather than think banks are going to "come around" realize that it will be along time, if ever, things will be as they used to be and look into the new sources of funding your business and projects.