United Bank & Trust Blog

We are thrilled to celebrate with Beal Inc. and their recognition in the prestigious Inc. 500 list as one of the most entrepreneurial and fastest growing companies in America. United Structured Finance and United Bank & Trust have had a strong relationship with Beal Inc. during this growing phase and have been able to utilize several SBA loans to assist in providing Beal Inc. the funds needed to sustain this level of growth and to help position them for future opportunities.

While this is an exciting time for Beal Inc., we work with similar entrepreneurs on a daily basis and are always excited when we are able to offer solutions for our clients needs.

Over the next five years, a substantial number of commercial real estate loans will be up for renewal, and unless the market changes drastically, businesses could be in for a shock when it comes time to renew.

With this in mind, what should an investor real estate project sponsor or owner do? The best answer is, “Start the Renewal Process Early,” and don’t let the threats of defeasance, prepayment penalties, etc. scare you. Posturing is normal in this economic climate, but to tell you the truth, many of these lenders would welcome the opportunity to have their clients find ‘new homes’ for their financing. Companies such as United Structured Finance Co. have recently expanded their financing solutions  and are ready to help clients brace for the potential impact that commercial real estate owners across Michigan and the Midwest might face. United’s new service is called Capital Market Solutions (CMS).

What types of properties are we talking about? Multi-family housing, senior housing, retail, office, medical office, industrial, self-storage and hospitality projects ranging from $500,000 to $50 million plus — would qualify for CMS solutions. While other big national banks play in this market (of off-balance-sheet financing solutions), most community banks do not get involved with these types of transactions. CMS  programs are  typically for stabilized properties. Companies like United Structured Finance look for national lending sources to bring a wider variety of financing options to meet client needs. These finance companies serve as correspondent lenders for various funding sources, including life insurance companies, government agencies like HUD and Fannie Mae. Sources also include specialized real estate financing companies or investment banks. The goal of an off-balance sheet finance company is to bring these national lending sources to Michigan and Midwest.

We’ve found that this credit environment makes it even tougher to place these types of loans. So starting early on your lender or finance company might be your best advice. To read more on this issue, go to http://MiBiz.com.

The country is nearly six months into health-care reform with the new law President Obama signed, called the Patient Protection and Affordable Care Act (PPACA).

No matter your political affiliation, you may be asking yourself – what does this mean to our community?  What are the effects on the health care providers, the leadership teams that manage the health care organizations and on the business community, all of which are faced with changing resources?

We have assembled an exciting panel of key players in the Washtenaw County Health Systems who will address these questions and provide a place for business leaders to discuss these challenges with the health care professionals on September 17, 2010.

For details of the event, the panelists and for registration, please go to:  http://businessofhealthcare.eventbrite.com/