The latest Beige Book released this week notes that all twelve reporting districts reported tightening business loan standards. Federal Reserve officials are openly discussing a credit crunch.Boston Federal Reserve Bank President Eric Rosengren said "the financial problems that initially created a liquidity crunch have now evolved into a more traditional credit crunch," in prepared remarks made available to reporters.
According to Rosengren, "the tightening already appears to be more widespread than it was during the early 1990s, and portends more difficulty in financing business fixed investment and commercial real estate projects in the second half of this year."
The Beige Book is simply a collection of anecdotal information on current economic conditions gathered through through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.
Too bad they didn't call me - I'm overflowing with anecdotal evidence of a credit crunch for both business loans and commercial real estate loans. More and more deals are finding their ways to asset based lenders as many commercial bankers are declining new loan opportunities and spending their time looking for cheap deposits.
Do you need help finding the right lender or telling your story the right way for your California business? Read "Matchmaking for Business Loans" and give me a call!
Tags : credit crunch , business loans , commercial real estate , bridge loans , Beige Book
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