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BofA's Small Business Lending Woes

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iris Nov 8, 2008 3:43 PM GMT I agree with Jerry Most of the large banks prefer not to make SBA loans and prefer to go the conventional route. Also Politicians do not understand what is happening to the small business out here. The SBA does not even know that the banks prefer not to use their loan products. It is scary that the banks and large industry is getting help and the small business with cash flow concerns may go out of business NOT because of BAD credit but simply because of being unable to get funding for cash flow needs.Hopefully, I will be able to share my story to those who can make a difference.I plan to send my story to the media to get my voice heard. Another Point is as soon as there is a tragedy such as the elderly lady who took her own life because the bank was foreclosing on her house, everyone will become concerned. I do not plan to wait until a tragedy to get my voice heard.Anyone interested in joining with me to tell our story contact me.
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Jerry Oct 15, 2008 9:47 PM GMT First of all, BofA and most big banks were never real SBA players, even though they led the nation in number of deals. They are SBA express lenders, a program that guarantees 50 percent instead of 75 percent. These banks usually look for conventional-quality loans that they may have done without the SBA guaranty. The only difference is the loans are smaller. They are in the SBA program for Community Reinvestment Act credit (CRA �??brownie points�?�) and to get business checking accounts. Start-ups and companies without a history of two to three years of strong cash flows are better off with small community banks.
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Andy Oct 15, 2008 2:18 PM GMT I hope that the larger banks get what they deserve.When there depsitors start having other options.
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Bill Oct 14, 2008 4:21 PM GMT Ten years ago, 7 out of the Top Ten lenders were non-banks and 9 out of 10, today are banks. The SBA programs are not a "specialty"...they are simply one more program and, have been grouped into departments that are directed to focus on less-creditworthy borrowers. These same banks had elected to participate in sub-prime residential lending and now view SBA loans in the same light. Therefore, they reduced funding for small business owners, since they got burned on sub-prime. As an 18-year SBA lender, I am seeing my bank be less aggressive and many competitors go away. Politicians, apparently do not understand the problem with access to capital is that banks are unwilling to lend aggressively, despite a government guaranty of 75% of the loan amount. The SBA has been making public comments about fewer businesses seeking loans, which is absolutely false. The SBA and Trasury Department need to encourage banks to make more loans (especially, SBA loans) during this crisis. They can do so by agreeing to be less critical during examinations and by SBA agreeing to be less aggressive in denying guaranties. This would improve access for many, many deserving small businesses.
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blame yourself Oct 14, 2008 4:05 PM GMT The following is the dumbest thing I have ever heard...2.It was the intent of this administration and perhaps even congress to reduce salaries of the US citizen to bring it n line with wages earned by immigrants and foreigners. By having wage equity between the two the economy would be forced into theoretical balance that would allow 'fair trade' with all our neighbors south of Texas.
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macklin Oct 14, 2008 1:02 PM GMT Nationwide SBA Express lending was shut down by CITI. So much for the ad they run about helping with the "dreams" of the little business guys through lending.
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Peter Oct 14, 2008 1:51 AM GMT Two things:1. The impact of predatory lending was not felt until the oil industry raised the price of a barrel of oil to the point where on average the price of gas oline reached $4.00 and diesel was a few cents higher. This sensitized the risk of mortages that were on a financial fine line to the point many werebeginning to default depending on the type of income a mortgagee was earning. The market was driven by the oil prices that drove up interest rates. As a result subprime rates and ARMs increased as well also making it difficult for mortgagee to make their monthly payments.It is difficult for me to believe that the Feds were oblivious to this cause and what the affects would result.2.It was the intent of this administration and perhaps even congress to reduce salaries of the US citizen to bring it n line with wages earned by immigrants and foreigners. By having wage equity between the two the economy would be forced into theoretical balance that would allow 'fair trade' with all our neighbors south of Texas.
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COF_Same_As_BAC_In_NJ Oct 10, 2008 10:28 PM GMT Capital One ended nearly all SBA loan initiations in NJ and announced recently it is also ending loans to car dealer purchases of showroom vehicles.
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