Business owners and real estate agents should receive some glimmer of hope for 2009 sales.  What should we see in 2009?

Government backed commercial loans will continue to grow in 2009 as investors and banks seek the safest real estate investments.  In the near future, only two sectors of real estate will receive the benefit and guarantee of the government.

SBA financing fell for several years as banks and secondary market loan programs offered a cheaper alternative along with less paperwork.  That all changed in 2008. 

The biggest change in the SBA program for 2009 should be the current proposal to raise the SBA guarantee to 80% for all existing and future loans until 2010.

This change would be a catalyst for banks to lend and a higher valued investment for a secondary capital market.  The proposal is a good step towards rebuilding the secondary capital market for investors. 

Multifamily investment loans currently are the same 2008 guidelines with no foreseen changes right now with the expectation that the support of Fannie Mae and Freddie Mac continue. 

Their investments in multifamily properties have outperformed the market tremendously with the non-performing properties still well under 1%.

Business owners and real estate investors who are just now seeking financing in the new lending age generally should seek a lending professional before submitting an application to assure they have the best opportunity for an approval. 

We shifted our market focus in 2008 to multifamily due to secondary market meltdown.  In 2009, we have partnered with a bank whose niche is working with the scratch and dent borrower.  Strong borrowers with good financials and credit will be able to obtain an SBA loan at their local bank.  However, there will be a great number of "out of the box" borrowers who will be declined.  Our bank is seeking those borrowers.

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