Smart Borrower Blog

Archive for the ‘Commercial Loans’ Category

Business Lending Standards Ease In Second Quarter

A recent Federal Reserve survey shows that lending for some businesses throughout the country got easier during the second quarter. In a time when lending has been difficult to come by for many businesses seeking credit this is good news. The survey which was conducted by the Federal Reserve received responses from 55 domestic banks during the time frame of July 12th through July 26th. Of the banks surveyed 20% of them confirmed that they had eased lending standards to large and middle size businesses mainly for those that had applied for industrial and commercial loans. The same survey also... more »

Big Banks are (Slowly) Opening the Lending Spigots

The latest survey from the Federal Reserve found that some banks are in fact starting to loosen their almost impossibly high lending standards as the economy starts to pick up. “The April survey indicated that, on net, bank lending standards and terms generally had eased somewhat further during the first quarter of this year,” the Fed wrote in its quarterly survey of senior loan officers. The impetus for this easing may have been an improvement in borrower credit-worthiness. The report found that 55 percent of domestic banks saw better credit quality among their large and middle-sized loan applicants. Thirty-five percent... more »

Commercial Loans Seen As the Next Big Problem

The National Association of Realtors is quoted as saying” commercial real estate is the hardest hit industry outside of the auto industry.  A recovery in commercial real estate always lags a general economic recovery but with the right policy prescriptions we can recover more quickly.” It appears there is little liquidity in the commercial loan market at present.  Right now it faces its worst challenge since the Great Depression.  According to Reuters, hundreds of billions of dollars in commercial loans will mature this year with over $1 trillion maturing in the next three years.  If there is no liquidity, commercial... more »