Resource Capital Shuts Down After Appeal Fails
Resource Capital Shuts Down After Appeal Fails
by Mark Anderson
Staff Writer- Sacramento Business Journal
Resource Capital of Folsom, one of the nation’s biggest small-business lenders, has gone out of business after failing to stop the Small Business Administration from seizing its loan portfolio.
The SBA announced its action last week, saying the nonprofit was awash in bad loans and had failed to set aside reserves or pay its share of losses.
With an 82-page decision, the SBA permanently revoked the nonprofit organization’s right to make loans and transferred all loans and applications to other lenders. Small-business lending was Resource Capital’s only line of business.