Small business loans have been the talk of the town the last several years.  The credit markets have been tight and obtaining a business loan has proved itself to be quite a chore.  The government decided to extend aid to America’s largest banks and insurance companies, along with our auto industry.  Many will argue it was a terrible decision.  It is what it is.  The government finally however, has decided to put their arms around small business and it’s needs.  The SBA (Small Business Administration) has done their best to come up with programs that offer financial relief to the small business community.  Last week President Obama urged congress to extend two SBA loan programs that would help extend more relief in the already so tight capital markets.  The first program is the SBA’s express loan programs which would expand the cap from $350,000 to $1 million.  The SBA’s express loan programs are dedicated to working capital and lines of credit for small businesses.  The second program is the commercial real estate loan program.  Obama would like to see small business owners have the ability to refinance their commercial mortgages to potentially relieve some financial stress.  In order to be eligible for this program business owners must have a first mortgage and must be current on all payments in the last year.  The White House expressed this new program would help refinance up to $18.7 Billion in commercial mortgages each year that would otherwise fall into delinquency or foreclosure. I think this is great.  Now, we have heard the government speak about expanding programs and dedicate more resources to the small business community with not much as a dent to show for it.  However, what this tells me is the government is looking into the future a bit to fix a problem before it happens.  There are commercial buildings completely empty all across the nation right now.  I have never seen more CBRE signs on one city block then I have in my entire life.  I believe the government sees that commercial mortgages could be serious trouble for our economy  in the next year or so.  I think if the SBA can entertain a commercial mortgage default solution, another economic emergency could be potentially bypassed, and our recovery to a once thriving economy can steadily be realized.

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