Felony convictions don’t make life easier. Donald Trump’s may complicate his ability to travel to some countries, carry a gun and—most importantly—secure loans.
“I think a bank would say, ‘Is this noise I need?’” explains John Petrovski, a veteran of the commercial real estate industry who once helped underwrite a Trump loan in Chicago. “You’ve got a guy who’s controversial. You’ve got a guy who’s convicted of a felony conviction. Whether you fall on the side that it’s fake news or you fall on the side that it’s a real issue, either way, it’s noise. And banks don’t need noise.” Would Petrovski loan to Trump again? “It would be a nonstarter,” he says.
Convictions aren’t the only issue. Several Trump companies have declared bankruptcy in the past, and the former president still has a cloud of legal issues swirling around him. Most of his net worth is tied up in shares of a social media company with shaky financials, and much of the rest sits in illiquid real estate holdings. Past lending documents required Trump to certify that he was not a felon or under investigation.
Nonetheless, Trump has a track record of finding lenders who are willing to deal with him despite his reputation. Mike Offit, who helped start Trump’s relationship with Deutsche Bank years ago, says Trump could probably structure things in a way that would give institutions more confidence. “Maybe he brings in an outsider,” Offit suggests, “so it’s not just his son running the company, so we’ve got somebody with a reputation in the business who’s a legitimate CEO.”
Even if traditional U.S. banks pass on lending to Trump, a foreign lender or political supporter might jump at the opportunity. The former president will probably be looking for lenders soon, if he hasn’t already started. A roughly $120 million loan against 40 Wall Street comes due in July 2025.
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