Building Growth in the Granite State: How New Hampshire Developers Can Make the Most of a Growth Meeting With Their Banker

New Hampshire’s commercial real estate market continues to present opportunities, but conditions vary by property type and submarket. For commercial construction and real estate development professionals, that makes an early growth conversation with a banker especially valuable.

Whether you are considering a new development, expanding into a larger facility, acquiring an investment property, or purchasing equipment to take on more work, your business banker can help you evaluate the opportunity and structure financing responsibly.

As you prepare for that conversation, the following steps can help make the meeting productive:

Clarify your risk tolerance.

Every development project carries risk. Market cycles, interest rate changes, construction costs, lease-up, and project timing can all affect the bottom line. Be clear about the level of risk you are comfortable taking and the collateral and equity you are prepared to contribute. If your banker cannot meet the full request as proposed, discuss whether changes to the structure, additional collateral, more equity, or another funding source could close the gap.

Plan for cost increases.

Construction costs, material pricing, tariffs, labor availability, permitting, and delays can affect a project budget. Build an appropriate contingency based on the project scope, stage of design, and input from your contractor and other professionals rather than relying on a single rule of thumb. A well-supported contingency shows your banker that you have considered the potential for cost overruns and schedule changes.

Prepare your financials.

Give your banker a current and complete view of the project and your financial position. That typically includes business financial statements, current interim statements, personal financial statements and tax returns for guarantors, a detailed project budget, sources and uses, construction plans and timeline, and operating projections with the assumptions clearly stated. For an acquisition or income-producing property, include leases, a rent roll, and relevant operating history.

Bring the right people.

If your controller, CFO, bookkeeper, project manager, contractor, or other adviser is responsible for key information, consider bringing that person into the discussion. Having the right team at the table can improve accuracy, resolve questions more quickly, and keep the conversation focused on the project’s strategy and execution.

Consider multiple funding sources.

Growth projects sometimes require more than a conventional bank loan. Depending on the borrower, project, and eligible use of proceeds, the New Hampshire Business Finance Authority may be able to support a financing package through credit enhancements such as its Capital Access Program or loan guarantees, direct or gap financing, tax-exempt bond financing for qualifying projects, and public-private real estate development structures. These options are not appropriate for every transaction, so discuss eligibility and structure early with your banker and the BFA. Bridge financing, owner or investor equity, and other public or private resources may also be considered when they fit the project.

At the end of the day, your banker should be more than a lender. A strong banking relationship starts before an application is submitted and continues after the loan closes. As the project evolves, your banker can help identify financing considerations, connect you with relevant resources, and support informed decisions that keep growth on a responsible path.

Andrew Patton is VP, Commercial Banking Officer at Machias Savings Bank, supporting the bank’s New Hampshire commercial construction and real estate clients. Learn more about Machias Savings Bank’s New Hampshire team at machiassavings.bank/new-hampshire. Member FDIC