Those who know me well know that it is hard to make me mad. This week, a bank we work with infuriated me. And I am still reeling.
A few weeks ago, the bank issued term sheets to two clients for Main Street Lending Program loans and took deposits to get the loans closed. While I know that there is legalese included in a term sheet that says that the bank can pull out at any time, a signed term sheet SHOULD be a commitment from both parties to do everything possible to get a loan done. And once a term sheet is signed, we go pencils down with other banks and focus on getting the deal closed.
Several weeks after taking deposits, suddenly, this bank changed their mind about participating in the program. "Whoops, we changed our mind !!" And whatever happened inside the bank politically, they arbitrarily dropped their commitment to these borrowers and left them out in the cold. We are working around the clock to fix it, but it will be a Hail Mary if we can get another bank to get our clients a Main Street Loan by the 12/31 deadline.
Could you imagine if you signed an agreement with an attorney to represent you, and a few weeks into your case, they said, "Sorry, we changed our mind?" Or if you scheduled surgery with a doctor of your choice, and a few days before the surgery, you got a call from someone in the doctor's office to tell you he thought the surgery was going to be hard and wasn't going to try and do it.
Maybe I am old fashioned, but banking should be held to a higher standard than this. Especially a community bank. I doubt the banker will get the joke, but I am sending him a case of Teflon spray today. Clearly, at his bank, nothing sticks.

Good for you. Banks these days forget who keeps them in business regular customers and small business like ours. It is a shame they put up so much restrictions and also revoke a loan after they have taken any fees. This is why more and more people are not banking as they use to. All I say is I have not taken a loan from a bank for 12 years and I have been in business for 16 years. So We look to other loan alternatives the will help our business in times of need. Thank you Ami.....
Classic reply to the bank on your part. Started my day out with a good laugh!!
I love your humor! Bankers should be known for their integrity. When I starting in the banking field 25 years ago, they still did handshake deals. The banker never went back on their word. Now, I feel like I see this same horrible issue over and over again.
To our banking partners, these business owners have placed their trust and businesses in your hands. Walking away in time sensitive situations creates holes that can't be filled. This is exactly why lender liability lawsuits are going through the roof. To this community lender, I hope this is not your normal operating mode going forward. You'll be tied up in all kinds of bad press and lawsuits with little trust from the community.
I hope that your clients are able to find alternative funding sources. Thanks for sharing this, Ami.
Nicely done, Ami.