Commercial lending funds still accessible area bankers say

A Fox Cities banker was heartened by the Federal Reserve's decision Monday to pump billions of dollars into the global financial system after the House rejected an economic bailout plan.

Linda Kennedy, chief executive officer of the Business Lending Group, Grand Chute, was upbeat on lending prospects, particularly for Fox Cities borrowers with clean balance sheets and steady cash flows.

"I think there's still money being lent, especially in the Fox Valley," she said. "We're still in the business of providing lending services to our members."

Kennedy said the Fed, by boosting the amount of 84-day cash loans $50 billion to $75 billion and tripling the supply of loans to $225 billion, will protect the banking industry even though the bailout bill was turned down.

"I still think that for the right credit opportunity, that for cash flows (with) down payment in it that those deals are going to continue to be done," she said. "It's the crazy stuff that went on a few years ago with no money down and limited cash flow you'll see not going forward."

Kennedy noted that the credit environment has tightened up in general the past few months and will likely continue to do so.

"M&I Bank will continue to make loans to good customers and prospects," said Thomas Ellis, executive vice president of M&I Bank in Milwaukee in an e-mail response.

Ellis said the impact of the rejection will affect lending institutions differently depending on their specific circumstances.

"Regardless of whether the act ultimately passes, M&I has strong balance sheet capacity and the resources to continue to grow," he said.

By making the larger sum available, the Fed said it intended to "expand significantly" cash available to financial institutions to unlock tight lending.

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Business Financial Services

Commercial lending funds still accessible area bankers say