In an America where the words “recession” and “pandemic” go hand-in-hand, the construction industry is getting slammed. Not all projects are slowed or delayed, but many are. The ones that aren’t are worried about who is going to be walking through the doors this year. It’s an energy that makes any developer worried about the availability of private construction lenders. They are still available today.
What is Happening in Construction Lending?
Despite the mentality that private construction lenders are hesitant, this is not always the case. Some reports indicate that lending for construction was ramped up in the second quarter of last year amid the pandemic.
Banks in America loaned over $380 billion in construction lending, an increase from the previous quarter. Non-residential lending saw a 4.2 percent gain.
What the Government is Doing to Help
With these gains in construction lending in projects of all kinds, developers today can take some comfort in knowing that help is available if times get tighter than they are today. The recently passed CARES Act has provided over $2 trillion in relief, with some of that relief being slated for defaulted construction loans.
Private construction lenders are meeting the government halfway on this, in the sense that they are now able to offer their own clients their own kind of relief. This could mean readjusted payment plans, interest rate changes, or forbearance periods that help when a project goes south or into the slow lane.
Yes, private lenders for construction are available today, perhaps more so than ever. Even during the pandemic, developers and builders can go into a project with less worry than they would have when the pandemic began.