The fear of financial industry executives stems from the impact that tech workers have on the broader economy. One well paid tech employee in the Bay Area creates another five jobs, economists estimate. That's a big plus for the regional economy when times are good — but a big drag when the industry sheds workers.
The tech layoffs are only just beginning, said Barbara Morrison, president of Oakland-based TMC Financing. Those cuts and rising interest rates are slowing lending and discouraging borrowing.TMC helps small business owners qualify for SBA 504-loans, often used to finance the purchase of commercial real estate used in the business.
But starting in April, it's seen in a reversal of fortune. The volume of its business has fallen every month since then, according to Morrison. By August, business was down 50% from February, she said. In mid-October, Mendez had said Patelco wasn't seeing an impact from the slowing economy on loan performance. That sitation has now changed, if just slightly, she said this week.