After Hurricane Harvey hit and severely damaged southeaster Texas, the Small Business Administration has stepped in the lend a helping hand. But local banks think that they should help to speed up the commercial lending in Texas process.
The Small Business Administration is helping small businesses with commercial lending in Texas to those who have been hit by Hurricane Harvey. The government organization offers support and disaster loans up to $2 millions to those impacted by natural disasters. The Small Business Administration has already processed close to 100 loans, totaling $8.5 million dollars.
Local banks usually do not assist with disaster funding because they are more of a financial risk compared to conventional lending. But many are currently in need of disaster commercial lending in Texas and many of the banks in the area that were hit hardest by the category 4 storm want to help the community without making a profit for it. Banks and lenders have first-hand seen the devastation that Hurricane Harvey brought, causing 18 counties in Texas to be declared disaster areas.
However, the Small Business Administration feels that disaster funding is unsuitable for banks and lenders. A law was placed in 2008 that directed the Small Business Administration to be in charge of disaster funding. The administration was established to help small businesses get back on their feet after being impacted by a natural disaster. This is why the Small Business Administration want to deal with disaster loans themselves.
With $19.4 billion backed by commercial lending in Texas were put at risk due to flooding, the Small Business Administration could actually benefit from any help they can get.
The idea of the Small Business Administration working with local banks and lenders would really help the community get back on their feet faster. It would be more effective to process the high number of applications for commercial lending in Texas, if there were more hands on deck. Many across the state of Texas will need assistance and if banks are willing to help, then it is a win-win solution for all involved.
Nearly three quarters of banks polled want to lend a helping hand with commercial lending in Texas after Hurricane Harvey
People in the area that was impacted by Hurricane Harvey know how much damaged was caused. This could be the reason why 70 percent of the 40 banks polled by the Coleman Report and reported by the American Banker said they would welcome the opportunity to help the Small Business administration with funding disaster loans to those in need after Hurricane Harvey hit.
Level 4 Funding LLC Private Hard Money Lender
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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.