Industries have needed to get a little help from the government in the past, but this time it is not an industry but a city—Atlantic City. The resort city could use a good commercial bridge loan, but it hoping to get one from the state.
When the U.S. government stepped in to bail out the banking industry, many wondered why. Their troubles were their own fault, and they should suffer the consequences. The same can be said for the auto industry and every other time the government has stepped in to bail an industry or a corporation out.
Maybe the business couldn’t get approved for a commercial bridge loans or maybe it was beyond the help a short term loan like that could give. Whatever the reason, there have been several industries and corporations that have needed government assistance to stay afloat.
There has even been a city or two. The federal government had to bail out the city of New York in 1975. It looks like the state of New Jersey is trying to do the same with Atlantic City.
Giving A Casino In Atlantic City A Commercial Bridge Loan Too Risky?
It is not unusual for a business to need an infusion of cash to make it through a tough stretch or until primary financing comes through. That is what commercial bridge loans are meant to accomplish. They are intended to make sure a business can pay its bills, employees, and whatever else it needs to in order to keep the doors open.
So how come the casinos and businesses in Atlantic City aren’t doing just that?
Well—maybe they are, or maybe they have tried, but with business dropping in recent years and with the state considering making gambling legal throughout the state, banks, and lenders do not see giving more money to Atlantic City as being smart business.
Why throw more money into a sinking ship if there is a good chance you’ll never see it again? If they default, the lender will get whatever property they use as collateral
But who wants a failed casino in a dying resort town?
Government To Lend A Helping Hand To Atlantic City With A Bridge Loan
It would not be good for the state of New Jersey if its biggest attraction—Atlantic City—were to end up turning out the bright lights. Why else would people visit New Jersey? What about all the jobs the casinos and attractions provide to locals? What about the tax income? So it only makes sense that the state steps in with a bridge loan.
Since there is likely not a lender willing to underwrite a sufficient commercial bridge loan the government has to—and it is. New Jersey Governor Chris Christie recently signed a pair of bills that approve a bridge loan that will hopefully be enough for the once proud tourist attraction to get back on its metaphorical feet.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.