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As the markets remain uncertain and traditional lenders retreat from smaller balance loans, the role of real estate lending in supporting the growth and success of small businesses is crucial. Small businesses have emerged from the COVID-19 pandemic needing more brick-and-mortar locations as customers are returning to stores and workers return to the office. The unique challenges faced by small businesses in acquiring and financing real estate are often not addressed by banks, forcing alternative lenders to fill the void. Lenders like Bluestone provide a pathway to growth by extending real estate credit to small business owners, creating opportunity for underserved borrowers like women and minority-owned businesses. By understanding how small business real estate lending helps to drive the growth of the economy, lenders and small business owners can collaborate to foster economic development, create jobs, and drive innovation.

Real estate is typically capitalized with a mixture of equity and debt, together called the capital stack. While Bluestone Private Credit Fund (“BPCF”) sits in the senior debt layer of the stack, many other real estate-based investments available to private investors are subordinate to senior debt. It is important for you to understand where your capital is on the stack as you make investment decisions and analyze your risk tolerance.