Wednesday, 05 November 2008 00:00

I attended Greater Louisville Inc's Town Hall Meeting on the Economy yesterday and personally heard local bank executives confirm they WILL do commercial loans in this market to credit worthy companies.

The thirteen member panel consisted of executives from five banks (5/3, Old National, PNC, Republic and Your Community Bank), a federal reserve representative and some local financial advisors. Every single banker at some point in the discussion verbally stated their ability and willingness to lend businesses money.

Does this mean anyone can get a loan? No, but it also doesn't mean banks aren't lending money. Their loan to value ratio (LTV) will probably be lower on commercial mortgages and you will have to show a history of cash flow. Yes, they're going to scrutinize loan applicants closer than before, but the sky is not falling on our regional banks. Very few participated in the sub-prime lending market, which should give our business community more confidence as our national economy finds its footing.

You can see more images from the event at the event's photo gallery.