Development Crossing

Corporate Social Responsibility (CSR) and Sustainability

Over the past couple of weeks I have been meeting with bankers about their commercial lending requirments especially as it pertains to SBA guaranteed loans; in particular the 7A. Needless to say I left the meetings highly frustrated. Body language spoke the truth about how lending institutions really feel about supporting small business. Arms crossed, no getting up from behind the immacualte desk and a faces that lacked all expression. I knew where this was going which left me with the question everyone is asking: when will banks begin to lend? Or how about show genuine interest in helping a small business owner and mirror that genuine interest with genuine effort. Not eveyone, you know has credit problems.

To complete the circle I spoke with the SBA today and the response was less than desirable. Are all money related institutions miserable? I just wanted updated information on the 7A program and all I got was "we have no talking points" which was then followed up with "and we won't guarantee loans for investments". I didn't ask about investments. All I asked about was the facts today and requirements. This individual surely did not care about guaranteeing loans and doing her obligatory part to help support our economy.

Without small business, our economy has little chance of surviving. The sooner the banks and federal agencies get that, the quicker we can turn this ship around.

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Nice post, I agree on the importance of small business to the economy and the need to get the lending engine turned back on, especially dealing with small businesses. Are these banks that you have had a previous relationship with already? Seems like they could've been a little more helpful, hang in there and i'm sure things will start to turn later this year.

More info on the 7A program here in case others are interested:
Hi Matt
It is tough to get small biz loans in general and in this environment it is even worse. I have a PDF outlining how to sell your small biz which also talks about suggestions how to get loans to buy them. You might want to reach out to some MFIs too but even they are very illiquid these days. I attached the PDF for you.
My meetings with the banks were to gather financing information for Splish franchisees. I met with bankers I know and found them all to lack much knowledge about the current state of their own institutions lending practices especially as it related to SBA 7A loan guarantee's. I'm now on day 3 of "not" receiving information the SBA in Colorado said they would email me. Clearly banks and governing bodies such as the SBA don't feel any sense of urgency with regards to supporting small business and therefore being a participant to stimulate our global economy.
That is the problem, they really don't care about small businesses even though if they lend to many small businesses it would diversify their default risk. It is hard to change that mind set of banks. If somebody has any suggestions, please share, especially in this market.
Its the same story worldwide, in spite of the fact that big business defaults on loans are huge, and yest it is big business that continues to have fairly easy access to bank finance.


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