HERE IN CHICAGO, MONEY STILL FLOWS For Some Small-Business Loans!
AS BIG BANKS BALK AT LENDING TO SMALL BUSINESSES, OTHERS HAVE STEPPED TO THE RESCUE!
Here in Chicago, there is much press about how mortgage money has dried up for many borrowers without strong credit credentials or sizable down payments. For many, FHA Financing is available, however - especially for those with down payments as low as 3.5%, or less-than-top FICO Credit Scores.
But what about financing needed by all sorts of small businesses. Funds that provide needed working capital to get them through recent economic sluggishness?
In her article in Sunday's Chicago Tribune, Reporter Becky Yerak tells of the owner of a Title Services Company in the Chicago Suburb of Schaumburg IL. The owner of the company had an outstanding six-figure line of credit with Fifth Third Bank.
With minimal, 60-day notice, the bank called the loan - despite the fact that the business was completely current in its payments.
In a state of near panic, the firm approached Chicago-based Signature Bank. The locally-owned lender extended the bank a fresh credit line, and the owner has renewed confidence the business will survive today's U.S. Economic Downturn.
Signature Bank wrote over $172 Million in Small Business Loans last year, and has reported a nearly 15% growth in such loans since last September. It is one of the Top Ten banks in terms of loan growth to Small Businesses since last September.
Yerak provides details of another Chicago Area Small Business, one that specializes in sports clothing, whose verbal request to increase their credit line was subsequently rescinded by their long-time bank. They subsequently set up a relationship with North Shore Community Bank, headquartered in the Northern Chicago Suburb of Wilmette IL, who extended a new, higher line to the business. The new funds, according to the company president, allowed them to continue to grow, despite recent weakened demand for their products.
Apparently, working capital for small business is indeed available, but, often, the best source for it is local.
Yerak's story provides more details.
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