It’s day four of the government shutdown and it’s effects have already been felt in Connecticut. Bob Polito from Webster Bank joined the Morning Extra to talk about what the shutdown means for your money.
How is the government shutdown affecting the economy or job growth?
- The shut-down is not good for our economy or job growth – it only increases levels of anxiety and uncertainty among consumers and business owners.
Did the shutdown catch banks flat-footed?
- Can’t speak for other banks, but Webster was prepared.
- Weeks earlier, my team of bankers had anticipated that the looming shut-down would grind the approval process for Small Business Administration (SBA) loans to a halt.
- Knowing the hardships that this would create for customers, we alerted customers considering taking out SBA loans to the risk, helped them accelerate collection of the necessary loan documentation, and worked closely with the SBA to get all of Webster’s loans approved before Oct. 1.
- Because we anticipated customers’ needs, none of Webster’s pending SBA loans got stuck in the pipeline.
What about new SBA loan applications?
- New applicants won’t be so lucky.
- Hoping for bridge loans that can be converted.
What was done the last time the government shut down – almost 20 years ago?
- In 1995, SBA provided guidance on the refinance issue. We’re still monitoring the situation to see if this is going to happen this time around.
For more information, visit: www.websterbank.com