CRF in the news
February 9, 2012
Companies that weathered the recession now have a new problem - refinancing debt
by Brian Burke, National SBA Lending Director
Typical post-recession scenario: ABC Company calls their bank to say that they've weathered the recession and they actually expect to turn a profit this year. But they're totally stressed out about their high debt service payments. What's to be done?
ABC Company is just one of many companies that are starting to see the light at the end of the recession tunnel. Now the biggest thing getting in the way of a full recovery is debt financing that's sapping them dry. And ironically, their bank can't help them, usually because of regulatory constraints.
Enter CRF. We come to the rescue in these types of situations, and now offer flexible loan programs such as the SBA 7(a) program. These programs make a huge difference in cases when it's difficult if not impossible for companies to refinance their loans with traditional lenders.
In fact, this week, we extended a $1.2 million SBA 7(a) loan to a great mid-sized Minnesota company. They've got everything going for them - good credit, great prospects, loyal employees - but were still trying to emerge from the shadows of the Great Recession. While they were able to remain current on all their debts, financial difficulties from previous years resulted in a balance sheet that was improperly structured and hampered their ability to move forward, make needed changes, and grow.
With their new 10-year CRF SBA loan, they can expand, add jobs and comfortably meet all of their obligations. We'll tell you more about them in future blogs.
Know other companies like ABC Company? Help us find other companies that need CRF's help and together, let's put an end to these post-recession blues.
Posted by: CRFUSA