Prime Commercial: Firms to face refinancing challenges with big banks

According to the Wall Street Journal and 2011 FDIC quarterly reports, the top five big banks in the U.S. hold 40% of all domestic deposits ($2.965 trillion) yet only make 16% ($97.3 billion) of all small business loans in America. In transactions rated by Fitch Rating, 1,200 commercial mortgage loans totaling $17.3 billion are scheduled to mature this year. This represents a sizeable drop compared to 2,000 loans totaling $22.5 billion that matured in 2011. Maturities remain modest in 2013 ($13.3 billion) and 2014 ($15.5 billion) before jumping to $29 billion in 2015. On top of this lending shortage, commercial mortgages for many businesses and real estate investors with previous 5 and 10-year terms are set to close out between 2012 and 2015, which could put many small businesses and commercial property owners in jeopardy. These loans are commercial real estate loans which were originated pre 2008 crash, and consist of both CMBS loans and conventional commercial real estate loans. Early this year, banks attempt to clear these outstanding loans off their books, many business owners and commercial real estate investors may find themselves looking for alternative lending sources. For businesses that cannot afford to pay off these debts or simply need to refinance, other alternatives can be beneficial. "We all saw the housing bubble come and go, and now the commercial bubble is right around the corner," said Kris Roglieri, president and founder of Prime Commercial Lending. "Many businesses and real estate investors in the time frame of 2012-2015 will need funding that the big banks are not providing, and this funding could be critical to their survival." Prime Commercial Lending is a private lender that provides capital directly and indirectly to small, medium and large sized businesses. Prime Commercial Lending can help provide the right financing solution for any businesses included in this wave. According to the New York Times, big banks are significantly shrinking as small business administration lenders. Bank of America, one of the top 7 lenders in 2006, plummeted from this position by 89% in 2010. 2012-2015 will prove to be a trying time for businesses that signed commercial mortgages with these banks 5-10 years ago, and are now facing the challenge of paying them off with little assistance from their respective financers. Prime Commercial Lending is a New York based commercial finance lender working to provide its clients lending of all types, including real-estate loans, equipment leasing, sale leasebacks, medical financing, business acquisition financing, and more. Composed of a group of certified, highly experienced financial professionals, Prime Commercial Lending is at the forefront of the commercial finance industry.