Property and collateral key to obtaining loans in Florida

10/3/2011

The U.S. Small Business Administration has increased its guaranteed loans in South Florida since August to $282 million - up from $234 million year-over-year, the Sun-Sentinel reports.

Regional banks in Florida are becoming more lenient with their lending policies in recent months, lending to "well-established businesses with property or other collateral."

One of these businesses is Quarterdeck Restaurants, which has five locations in Florida. Owner Paul Flanigan was recently able to add raw bars to these locations and hire several employees thanks to a small business loan from Miami Lakes-based BankUnited in July.

The news source notes that BankUnited has increased its small business and commercial loans by 60 percent in 2011.

"The little banks are cherry-picking the good stuff," John Dunn, assistant district director at the SBA in South Florida, told the news source. "We're seeing them looking at a dozen deals and taking one or two." He added these the chosen companies typically have property worth more than the loan itself.

Excessive heat stemming as far back as April 15 has caused the SBA to offer economic injury disaster loans up to $2 million to nonprofit organizations and small businesses that suffered because of the drought.