Paul Mueller Jr., Vice President of Commercial Lending at ABOC, joined the America's Work Force Union Podcast to discuss the intricacies of construction lending for unions, the importance of early lender involvement, the unique aspects of union construction lending and the steps in financing union construction projects.
Mueller has spent 40 years in the banking world after growing up in a union household. His father was a 50-year member of IBEW Local 134 in Chicago. Mueller discussed the importance of involving lenders early in the planning process regarding the union lending process. He advised union leaders to contact lenders at least a year before their project, allowing ample time for discussions and planning. This enables lenders to provide valuable insights, such as suggesting property subdivisions for different purposes or addressing potential challenges before they arise.
Next, Mueller highlighted the importance of working with lenders experienced in union operations and construction lending. He explained that unions have different organizational structures, approval processes and financial reporting methods than traditional commercial entities. Mueller explained that the specialized knowledge allows lenders like ABOC to navigate the complexities of union finances and construction projects more effectively. This can potentially save time and reduce misunderstandings throughout the lending process.
Finally, Mueller outlined the critical steps in financing union construction projects, starting with the union's internal planning and extending through the loan application and approval process. He detailed the typical timeline, noting that it usually takes 60 days from application to the first draw on the loan. This period includes the appraisal process involving an "as-is" and an "as-completed" property valuation. Mueller discussed the importance of choosing the right banking partner that understands unions' unique needs and can better guide them through the complexities of construction financing.
For more insights on union construction lending from Paul Mueller Jr., listen to the full episode of America's Work Force Union Podcast.