Credit Availability and Financing

Funding in the past year has been a challenge. Although there have traditionally been a number of sources for commercial loans, adverse economic conditions have combined to limit credit:  The major problem in the past several years has been the collapse of the CMBS (commercial mortgage backed securities) market accompanied by significantly tighter credit conditions by banks. In the past decade, regional commercial banks significantly increased their exposure to commercial real estate, with a number of loans subsequently entering default. This has resulted in a reduced level of credit availability, both as a result of the need to protect the bank's capital base as well as in response to regulatory requirements.