March 04, 2009

Venable partner Chuck Morton quoted in Baltimore Business Journal on alternative capital for business expansion

1 min

The February 27, 2009 edition of the Baltimore Business Journal featured a quote from Chuck Morton on mezzanine financing as an alternative source for businesses seeking dollars to grow.

According to the article, despite the economic downturn many companies are on the hunt for cash to expand their businesses, but once-easy loans of $500,000 to $1 million are hard to come by. Many companies are turning to small banks and credit unions, angel investors, asset-based lenders and mezzanine financing as alternative sources for funding.

Morton said he has seen an increasing portion of financing coming in multiple tiers - meaning, there are multiple lenders sharing the risk of the loan, and they are prioritized to determine who gets repaid first. Mezzanine loans come in secondary to traditional bank loans.