The Congressional Oversight Panel (COP) concluded in a February 2010 report that the U.S. economy could take another hit from failing banks and commercial loans. “A significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American,” the congressional inquiry said.
The COP singled out small banks. There are roughly 8,100 banks in the U.S. and about 3,000 of them are small banks which are exposed to problematic commercial real estate loans. The panel pointed out that more than half of all small business loans are handled by small banks. Bank failures from commercial loan failures could have a devastating effect on small businesses across the country.
The panel reported that 45% of all job losses have been from small businesses in this economic downturn. Failure of commercial loans suppresses economic recovery. Small businesses will not be able to get credit they need to grow, and credit is already constrained. The COP recognized in their report that if banks are forced to take write-downs on commercial real estate loans, many banks could indeed fail, which would spiral through the system.
Be Part of the Solution
Prudent workouts could be part of the solution. Commercial Affiliates are debt restructuring specialists. We have workout experience totaling more than $10 billion dollars. We employ an array of solutions and tools, which could include recapitalizing your property, management solutions and modifications that buy time for recovery. Using our services could stop the losses that would be endured by you, the lender and our financial system.
Don’t delay – contact us to discuss your property. You will receive more than $500.00 worth of our latest research for free. The information will give you exclusive insights into obtaining a loan modification.
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Telephone Miles McCabe at 1-503-731-6000