Cut my Debt, Maybe?

As a lender, I am very happy with the way rates are right now. Commercial real estate projects actually work pretty well with debt in the 4′s (or 3′s if you are borrowing from a life company or bank on a larger, quality project. We do deals primarily in the $250,000 to $3MM range – considered a small loan — and we are in the 4.5′s, a great rate offering for a fixed rate zero prepay loan to fund your purchase or rehab of a building with the SBA 504 program or perhaps on a little shopping center or 5 plex or industrial building. See Centennial Lending Commercial Rates and Programs July 2012. But the Treasury is supporting low long rates (operation twist) and short rates. We’re basically printing money to buy our own bonds. We are adding $4 billion every day to the national debt. It’s not sustainable.

Rome fell because revenues were outstripped by bloated budgets. Senators bought votes with the 55 BC version of pork — an aqueduct here, a road there. Investors lost confidence, armies far afield returned empty handed, the treasury diminished. Empires unable to pay their bills basically collapse in the end. Want to see the real numbers? Can you stand it? Visit

Cicero’s famous quote rings true 2,067 years after it was written in 55 BC:

“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lets Rome become bankrupt. People must again learn to work instead of living on public assistance.”

I want to hear either side talk about balancing the budget. Show me the path. Show us a reason to hope. Balance me, maybe?

Speaking of which, you’ve seen this and if not, you should — it’s my down the street neighbor, Missy Franklin, and the US swim team. Makes you proud, maybe?



About Timothy E Thomas

Senior business development officer, CENNTENNIAL LENDING, metro Denver. Responsible for SBA 504 production and conventional small balance commercial lending. Centennial is a credit union service organization owned by 13 credit unions in Colorado and Wyoming. Former SBA-USDA desk manager and Registered Representative for Isaak Bond Investments, Inc., a municipal broker dealer and market maker in SBA and USDA guaranteed loans and pools; taxable and tax exempt municipal bonds and agency securities serving institutional investors for over 33 years, member SIPC, FINRA.
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