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.