Calif. bank in midst of turnaround eyes tear-down projects

Gateway Bank is aggressively expanding its residential construction lending division. This move comes as part of a larger turnaround strategy under new leadership. The bank recently hired a specialized team of lenders to focus specifically on 'tear-down' projects and new residential builds. For contractors and home improvement professionals, this signals a potential increase in available capital for high-end residential projects in the California market. The bank has successfully narrowed its previous losses and is now looking at construction financing as its primary engine for growth. While many traditional banks are tightening their belts, Gateway is positioning itself to fund the gap in the housing market. They are specifically targeting projects where older homes are replaced with new, higher-value structures. Retailers and operators in the home improvement and construction space should view this as a positive sign for project funding availability. When local banks hire dedicated construction teams, it usually leads to faster approval times and more specialized draw schedules tailored to the reality of a job site. Keep an eye on Gateway if you are operating in the Western U.S., as they aim to be more nimble than national lenders.

Source: American Banker — Top News

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