Business Financing – Looking for Your Fair Share of TARP?

davegaddisby Dave Gaddis
CMG Management Services, LLC

The Wall Street Journal reported on January 26, 2009 that of the $3,321.68 billion (that’s trillion with a ‘b’) in loans written in the fourth quarter of ’08, loan volume was down by 1.37%.  This drop in loan activity occurred in the face of the infusion of $147.91 billion in TARP funds (Troubled Asset Relief Program). 

Are you a business person who’s been looking for your share of that $3,000 billion?  Have you been shopping for a loan to start your new business?  Is your competition no longer viable and it’s time to take advantage of them by expanding?  Maybe it’s time to merge with another company?

…if only you had some of that cash. 

Accompanying this WSJ article is an informative chart that depicts how pervasive the cutbacks in loan activity have been – for the top 13 banks in the country.  Amidst the 13, there are 3 that ramped UP loan activity!  If it’s not already obvious and perhaps contrary to popular belief, there is still a lot of money out there to borrow.  $3.0 trillion?  

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If you’ve not gotten your fair share, it’s possible that you’ve been looking in the wrong places. 

All is not lost.  If you need financing for your business, return to the fundamentals.  Your business and personal financial perspective must come together, i.e., business plan, credit standing, personal financial statement, business financial reports, etc.  Only then can you start to look ‘in the right places’.  The right places, in Michigan, may no longer include your local bank where you hold either a depository relationship or otherwise.  If your local bank is among those that curtailed their loan activity, you’re looking in the wrong place to ignite your business plan.  Reach beyond your comfort zone; enlist the help of consultants, independent commercial brokers, or ask your bank branch manager where he would go!  Smart branch managers want to retain their depository relationship with business owners.  Their list of networkers in the financial arena can be very impressive.

Banks loaned $3,321 billion in the last quarter of ’08.  Some of it could have been yours if you knew where to look.

About the Author:
Dave Gaddis is President and CEO of CMG Management Services, LLC,  a full-service leasing company with an office in Northville, Michigan, and the capability to conduct business anywhere in the continental United States.   His areas of expertise include:

  • Equipment Leasing & Financing
  • Working Capital, Start Up Funding
  • Business Expansion Loans
  • Debt Consolidation, Business Re-Finance
  • Franchise Leasing & Financing
  • Commercial Real Estate Financing

For more information, contact: dave@cmg-leasing.com

Filed under: Financing for your Business

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