Last fall, developer Steven Witkoff needed a construction loan quickly for a retail development in Times Square.
Plan badly and you will open months late--and be owing on a construction loan all the while.
"This wouldn't have happened two or three years ago, " said Valerie Heller, region manager for commercial real estate in U.S. Bank's Pacific Northwest region, of the Idaho construction loan.
Developers had about 50% of the retail space in the Meridian's 830, 000-square-foot initial phase leased to retailers such as a Gap store and to restaurants before it got the construction loan.
Still, construction-loan terms for borrowers are tougher than they were before the recession.
Homex quelled market worries somewhat in April via the sale of stakes in two penitentiaries, and by securing a bridge loan for construction under a new loan-guarantee program being offered by the government.
WSJ: Two Mexican Home Builders Hire Advisers Amid Debt Concerns
But that is only if one excludes Hyundai Engineering and Construction from the loan list.
Today, only two utilities are moving ahead with construction plans, helped by federal loan guarantees.
"Exelon remains committed to Antelope Valley Solar Ranch One and expects to receive the initial loan advance upon resolution of the construction-permit issue, " said Exelon spokesman Paul Elsberg.
WASHINGTON President Obama's top advisers recommended cutting off funding for a federal loan-guarantee program meant to spur the construction of wind and solar farms and other alternative energy projects, saying taxpayer dollars might be better spent elsewhere.
U.S. Bank says construction loans accounted for nearly 50% of its total new loan commitments last year, up from 15% in 2008.
Today, China Construction Bank Corporation reported a 31 percent increase in profits on higher loan demand and higher interest rates.
FORBES: Which Big Bank Gives Plenty Of Loans, And Is Profitable?
Proponents of nuclear power say construction of new plants would likely require the extension of a federal loan guarantee program, also created by the 2005 energy act, that's set to expire in 2009.
The report notes that, in addition to getting loan priority, the government will take steps to promote increased construction of affordable housing.
After construction, the elder Mr. Spiliadis, 74, applied for the loan to roll into a 20-year mortgage with balloon payments every three years.
WSJ: Foreclosures loom as small firms face balloon payments on mortgages
Jim Reis, owner of a construction company and a member of the board of education, is one of those who backstopped the loan.
As a part of energy legislation that went through Congress, it opened up the possibility for loan guarantees to stabilize and incentivize an industry that obviously, as a result of no construction in 30 years, had dwindled.
应用推荐