Yes, banks are still lending in light of COVID-19! Although in the current climate, banks have unsurprisingly tightened their loan standards due to economic uncertainty. Commercial real estate lending is under stricter regulation as banks have to protect themselves in the event that are negatively impacted or become riskier borrowers for reasons outside their control.

Recent events make it more difficult to borrow from banks, but that’s why we’re here! Our experts will explain your financial options to you and advise you in making the best decision for your situation.

You don’t necessarily need to open accounts at more than one bank, but you may benefit from having more than one. In the event that your bank experiences technical difficulties and you aren’t able to access your funds for a period of time, you’ll want another way to access your money. If you have accounts with more than one bank, one bank can function as a back-up in case of an emergency.  

On the other hand, opening multiple accounts with the same bank can help in the event of fraud. An operating account, payroll account, and a money market account are an example of the different accounts a business should have. Most money market accounts do earn interest on your balances.

The money you put in your savings account will accumulate interest over time. Savings accounts generally have a transfer limit, meaning you can only transfer funds out of the account a fixed number of times per month. This is why you have a checking account as well.

On the loan side, having more than one bank can provide security from a single bank changing its appetite for particular loans as what happens when banks get acquired, which we have seen several local banks being acquired.

When you schedule your initial consultation with us, we’ll tell you everything you need to know about opening accounts with multiple banks.

Getting a commercial real estate loan through a bank has different implications than getting one through a private lender. Generally, banks cost less to borrow from, but it can also be more difficult to get approved by them. Private lenders are often easier to communicate with and can be more flexible than banks, but they can also be more expensive in terms of interest rates. 

The process for getting approved by a private lender is generally quicker than the process through a bank lender. Private lenders also offer greater customization in their loan options than bank lenders. 

Bank lenders are ideal for financing simple properties, while the more complex properties or shorter deadlines are better accommodated by private lenders. The best approach depends on your financial situation, as well as your short term and long term goals. We can help you decide which route is best for you when you visit our office!

Unfortunately you can’t assume that your bank has your best interest in mind. Strict guidelines and regulations of bank lending can make it difficult for the bank to accommodate your situation entirely. Bank lenders often don’t allow for the flexibility that many people require with their finances. 

When you schedule your consultation with us, it’s our goal to explain everything you need to know with full transparency. Your best interest is our best interest, so you can rest assured that we’ll help you to make financial decisions that align with your short term and long term goals.

It can be difficult to get approved for a commercial real estate loan if you have poor credit or if your business is relatively new to the market. Finding a loan with a reasonable commercial interest rate can be challenging too. 

Lenders may require you to improve your credit score before you can be approved for a loan. They’re likely to assess your ability to repay the loan, depending on your income, your deposit, and the type of commercial property you’re seeking. 

How does Mirenda & Associates help with commercial loans specifically?

The process of getting approved for an SBA (Small Business Administration) loan is relatively similar to the approval process for a commercial loan. SBA loans are considered one of the most secure, affordable financial solutions for small businesses. 

There are different types of SBA loans available for small businesses, depending on the business’s specific needs. Because the SBA is slightly more lenient with the minimum requirements it sets to be qualified for an SBA loan, SBA terms may allow a business to qualify for a loan where it may not qualify via a conventional loan.

How does Mirenda & Associates help with SBA loans specifically? 
Commercial loans can be confusing and SBA loans can be even more confusing. We explain the good AND bad about each SBA loan product and why a bank might steer you to one loan type over another. We help you decide what is best for you and your business.