Current Business Trends and Positive Developments Amid Economic Uncertainty
I get why people think there might be a recession, but from where I am in my business, things still look pretty good. The economy seems to have some life left in it, and I even have a feeling that stocks might do well for a couple more months. So, what’s happening in terms of closings?
There’s been an increase in private money loans lately, and the demand to close them quickly is growing. This can be seen as a negative since desperation isn’t usually a good thing. On the other hand, many SBA loans are also being closed, including those for construction projects.
For instance, this month we have a ground-up construction loan for a hotel, totaling $20 million, which is set to close next week. The borrower is strong, as they have $5 million in land equity and cash invested in the project. We’re providing a total of $15 million to support the construction ($10 million from my lender and $5 million from the SBA).
It’s true that construction lending, particularly for hotels and special projects, has slowed down, which is another downside for the economy. However, there are still lenders willing to offer construction loans. In fact, I recently got approval for another ground-up construction deal worth $22 million from a different lender, also using the 504 loan product.
Most of the SBA loans I handle are for purchases, construction, or starting up franchises—basically, loans for expanding businesses. So, while there are definitely risks and challenges around, there are also signs of strength and positive developments. In my opinion, the best approach is to be aware of what could happen without letting fear take over. Get your affairs in order, stay positive, and be proactive. As the Bible repeatedly says, “Do not fear.” Those are wise words to live by. Wishing you a blessed week!
P.S. Did you know? Construction financing HAS tightened and investors ARE struggling to find deals that pencil out with where rates are today, but SBA and private money loans are still booming. Businesses are still growing or starting, and people closing fast to take advantage of opportunities is REAL! If you or someone you know is looking to grow or expand their business or you have a need for quick commercial loan closings, give us a call today! We are still here and still busy and ready to serve your needs….Give me a call at 512-358-1511 or go here to get started.