More evidence banks not lending

With most banks scared to lend money as federal officials breath down their necks, what are business owners to do when their mortgages start to mature?

Successful businessman Harvey Vengroff, one of the largest owners of apartments in Sarasota and Manatee counties, is facing the dilemma. Vengroff, who has a total of nearly $100 million worth of loans, has some that have reached maturity with virtually no prospects for another bank to take them on.

“I'm a member of the landlords association and this is hitting a lot of them,” Vengroff says. “Almost everybody there said they had stopped paying their [property] taxes for the year because it was cheaper money, going into delinquency, than they could get from a bank. It certainly would be nice if we could get a little understanding from the banks, especially when they are getting money from the government for 0%.”