Short and to the point this evening. One of my major lenders has completely stopped doing any SBA 7A loans that do not have a commercial component.
Very simply, we used to be able to do SBA 7A loans with residential collateral as long as the collateral covered 90% of the loan. As of today the only collateral this lender will accept is a commercial piece of property. What does that say about their faith in the residential market coming back,,,Not Much!!!
They will do loans that are SBA that have real estate as part of the purchase, but without real estate as part of the purchase and no commercial real estate as collateral - NO LOAN
The problem I have is that this particular lender is usually a trend setter, and if other banks and or financial institutions follow suit, we are only going to go deeper into the muck and mire.
Now for the good news this evening we are still closing deals!!!!
There are still lenders that want depository relationships and as such are looking at these deals differently than they did before this debacle started to unwind.
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