Rates going up up up! 🎈🎈🎈

Unless you live in a cave, you can’t help but notice the rates continue to go up. As of May 9, 2023, Prime Rate is currently 8.25%. I’ve actually seen it higher but because we had low rates for so long, honestly borrowers were spoiled in my opinion. The lending community has been more impacted by recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank and the subsequent takeover by the FDIC, it has caused many banks to significantly curtail their lending activities. Many places will not even look at a deal now. In my opinion, they are in a “wait and see” mentality. The good loans will probably still be done, albeit just a little slower and the marginal transactions won’t. One thing I tell people whatever the economy is doing and whatever the lending community is doing, always put together an excellent Executive Summary and Use or Proceeds, and if you’re looking for funding, make sure you have that available, regardless if it’s a government backed loan like SBA or Rural Development, conventional financing or private / hard money financing.