Star News

Boosting credit to struggling small businesses is “crucial” to economic recovery and poses an important policy challenge, Federal Reserve Chairman Ben Bernanke said this week. To support the recovery, “we need to find ways to ensure that credit-worthy borrowers have access to loans,“ Bernanke insisted during an address to a Fed-sponsored conference on small business financing.

A significant drop in bank lending has aggravated the already wobbly U.S. recovery. Total loans held by commercial banks fell by 5% in 2009; and lending continues to contract this year. In his address, Bernanke noted the important role small businesses play in job creation, and said they continue to report very difficult credit conditions. The Fed “takes very seriously” complaints from bankers that bank examiners often prevent institutions from making good loans; adding, however, that “lower loan demand, restricted credit availability, and the weaker financial position of many businesses following the deep recession are all factors in holding back lending.” “Banks have found themselves particularly crimped by the declining value of real estate and other collateral they use to secure their loans,” he concluded.

A significant drop in bank lending has aggravated the already wobbly U.S. recovery. Total loans held by commercial banks fell by 5% in 2009; and lending continues to contract this year. In his address, Bernanke noted the important role small businesses play in job creation, and said they continue to report very difficult credit conditions. The Fed “takes very seriously” complaints from bankers that bank examiners often prevent institutions from making good loans; adding, however, that “lower loan demand, restricted credit availability, and the weaker financial position of many businesses following the deep recession are all factors in holding back lending.” “Banks have found themselves particularly crimped by the declining value of real estate and other collateral they use to secure their loans,” he concluded. We will keep you posted…

National Lender Making Non- Recourse Loans From $10 Million- $150 Million

Penstar is currently working with an institutional capital provider originating non-recourse debt for loans on office, industrial, retail, and hotel properties nationwide. The transactions are priced at fixed rates of interest, at 5.5% for 5 years, and 6.0% for 10 years; and will offer a maximum amortization term of 30 years. To learn more, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Helpful Humor

The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week

“Long Hair”

After successfully getting his driving permit, a young teenage boy approached his Dad to discuss use of the family car. “I'll make a deal with you, son;” his father said firmly: “Bring your grades up, get your hair cut, and study your Bible.” “Then, we'll discuss driving privileges.”

A month passed and the boy approached his Dad, again asking to discuss use of the car. “Son,” he said, “I am very proud of you.” “Your grades improved dramatically, you have been diligent about your Bible study,” he reviewed, continuing, “but you haven't gotten your hair cut.” “I don't understand,” his Dad said, visibly puzzled.

The young man stood before him for a few moments, appearing pensive. “Well Dad,” he declared, “I have thought about that a great deal.” “Samson had long hair. Moses, Noah, even Jesus had long hair.”

“Well,” said his father, “that may be true son; but they walked everywhere they went.”