Emerald Business Systems Blog

A Bank Idea, With Ancient Roots, for Helping Small Businesses

Posted in General Business by ebs4pos on December 24, 2009

To this day, Bart Mitchell is not entirely sure he knows what a merchant bank is. “I guess I think of it as the old-fashioned banker who takes the time to listen to his customer’s needs and help them solve their problems,” he said. Actually, that is not far off.  One thing he is certain about is that if not for Next Street, a four-year-old, 22-employee merchant bank with offices in Boston and New York, his development company would have been in big trouble.This year, in the teeth of the worst commercial real estate and lending crisis in a quarter century, Mitchell Properties managed to secure $5.7 million in long-term financing for an 84-unit condominium and retail complex in Boston’s mixed-income South End.The financing, arranged through U.S. Bank and a mind-numbingly complex public-private sector loan program known as the New Market Tax Credit, essentially retired $1.7 million of construction debt, shaving about $20,000 off the project’s monthly loan payments. For Mitchell Properties, it was probably the difference between surviving the recession relatively unscathed and contributing to the growing list of belly-up real estate projects.“I don’t know what we would have done,” Mr. Mitchell said. “In general, the projects that qualify for the program are much bigger than ours, but Next Street knew all the parties and was able to put the pieces together.”

via A Bank Idea, With Ancient Roots, for Helping Small Businesses – NYTimes.com.


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