Business is already slowing at some financial institutions and loan performance is deteriorating.
The fear of financial industry executives stems from the impact that tech workers have on the broader economy. One well paid tech employee in the Bay Area creates another five jobs, economists estimate. That's a big plus for the regional economy when times are good — but a big drag when the industry sheds workers.
The tech layoffs are only just beginning, said Barbara Morrison, president of Oakland-based TMC Financing. Those cuts and rising interest rates are slowing lending and discouraging borrowing.TMC helps small business owners qualify for SBA 504-loans, often used to finance the purchase of commercial real estate used in the business.
But starting in April, it's seen in a reversal of fortune. The volume of its business has fallen every month since then, according to Morrison. By August, business was down 50% from February, she said. In mid-October, Mendez had said Patelco wasn't seeing an impact from the slowing economy on loan performance. That sitation has now changed, if just slightly, she said this week.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation scrambles Thanksgiving meal plans for many in Bay AreaTurkey prices are soaring and some are starting to think twice about serving a traditional Thanksgiving meal.
Read more »
Bay Area Veteran Among the Unsung Heroes of World War IIOne Bay Area veteran is among those getting their due.
Read more »
How did Bay Area voters decide on housing issues this midterm?As the Bay Area seeks solutions for an ever-intensifying housing crunch, voters across the region this midterm election largely embraced local ballot measures to build more affordable homes and bol…
Read more »
Bay Area high school football roundup: Best of CCS, NCS first-round playoff gamesFlorida commit Jaden Rashada leads Pittsburg over Antioch. Wilcox cruised past Lincoln-San Jose. Liberty, El Cerrito also prevail.
Read more »
Bay Area Korean veteran dedicates himself to making sure 'The Forgotten War' is never forgotten'We are fading away pretty fast as Korean veterans, but we're going to leave a mark about not being forgotten.'
Read more »
Why one Bay Area city is getting mail in the middle of the nightSome South Bay postal workers have been out delivering well into the night.
Read more »