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Monroe Capital CEO Ted Koenig weighs in on supply and demand for small-business lending.
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-- concerns about the health of the economy hit our small business is really hard insists harder for them to get loans these days but our next guest is trying to fill the gap.
Joining us now is Ted -- CEO and president of Munro capital.
Ted you know in April we saw that supply and demand of loans for small businesses dropped why.
It's interest -- get an interesting dynamic right now the large banks are funding larger companies.
And the smaller regional banks have capital constraints and with capital constraints -- and able to make loans available.
To middle market America main street companies because they're not invoke.
But they're trying on purpose to aren't they to keep debt off their balance sheets like small businesses are really cleaning up their balance -- and try to stay that way small businesses have actually been a much better job right.
But managing their business managing their finances -- larger companies have.
The challenges is when they need to grow where they wanna make an acquisition where they want to make some type of very.
A -- of change in their business that's when they need capital and that's the capital it's hard to obtain.
Right and that's what we need to get our economy going -- so you're saying the private sector actually does a much better job -- lending.
To be small businesses -- the banks house up.
60%.
Of the GDP of this country it's.
Develop a small businesses and so we have to start that process we have the -- business is back on track and expanding.
The private sector is unfettered by some of the regulatory burdens and doesn't have the same.
Requirements so we can address these companies on a case by case need.
And devise a custom tailored financing package the flexibility to address the company's needs.
But my private sector are you talking about Angel investors venture capitalist things like that I'm talking about funds are financed companies that are set up to specifically assist small businesses middle market companies as we call them and that's -- That's -- -- -- capital does EU finance small business correct middle market companies anywhere from companies that do 500 million in revenues down to 25 million we added loans have you issued so far this year.
We've -- a -- transactions already this year.
We've in the last five years we don't 300 separate transactions.
About a billion and a half dollars in total capital to these company how do you decide what's -- proper business -- investment.
Fundamental credit.
We're very focused -- underwriting and stability of cash -- companies that have a purpose or reason to exist companies that have been around.
That are growing so these are not brand new company -- correct.
Correct we don't to finance for a new companies that's Angel investor -- That start up capital that -- readily already established smaller and midsize businesses correct the backbone of America.
And and you say that you issued a hundred million dollars of capital to women and minority businesses are -- -- a growing segment isn't it yes we you have a specialty of financing women owned and minority owned companies.
-- finest -- mid -- business watching right now how to get touched you get some money Monroe kept dot com.
Take your awesome thank you thank you take gaining -- -- bash at least somebody's giving out money backbone.
