Local lenders in Memphis have reported an increase in commercial and residential construction projects as the economy continues to slowly improve. The president of Magna Bank recently reported that the company is looking into expanding its construction loans, mini-perm loans and bridge loans for both commercial and multi-family projects.
Magna is in the process of approving three commercial loans valued at more than $15 million each in Tennessee and three additional loans in the surrounding states. In 2012, the company loaned approximately $250 million as part of 60 separate commercial and multi-family loans as part of the best year in Magna's 20-year history. Other lenders such as Renasant Bank and First Tennessee Bank are also seeing an increase in businesses seeking commercial loans. The market has rebounded as lenders have resolved many of the issues that caused the economic crisis. More companies are engaged in more controlled lending than what happened in the past. In addition, as the numbers of businesses and individuals seeking commercial loans has increased, there are more competitors. Competition exists not only for new loans, but also when a business seeks to refinance an existing loan.