Former President Trump’s felony convictions may hinder his ability to travel to some countries, carry firearms, and most importantly, secure loans. This is due to the negative attention surrounding his controversial past and legal issues. A veteran of the commercial real estate industry, John Petrovski, believes that banks would see Trump’s history as unnecessary “noise” and would be unlikely to lend to him again.
In addition to his felony convictions, Trump’s history of bankruptcies with several of his companies and his current financial holdings in a social media company with shaky finances may pose further challenges for securing loans. Past lending agreements required Trump to confirm that he was not a felon or under investigation, which could further complicate his ability to borrow money in the future.
Despite these challenges, Trump has a proven track record of finding lenders who are willing to work with him despite his controversial reputation. One option to increase institutional confidence in lending to Trump could be to bring in an outside CEO with a reputable background to help oversee his businesses and financial dealings, according to Mike Offit, who helped start Trump’s relationship with Deutsche Bank years ago.
Even if traditional U.S. banks are hesitant to lend to Trump, there may be opportunities for him to secure loans from foreign lenders or political supporters who are less concerned about his past legal issues. With a $120 million loan against 40 Wall Street coming due in July 2025, Trump may be seeking new lending sources in the near future. It remains to be seen how his felony convictions and other legal issues will impact his ability to secure loans moving forward.
Despite the potential challenges ahead, Trump’s ability to overcome obstacles in the past and secure financing from willing lenders suggests that he may be able to find a way to continue his business dealings despite his felony convictions. It will be important for him to navigate these challenges strategically and possibly make changes to his business structure to increase confidence among potential lenders. The future of Trump’s financial endeavors will likely depend on his ability to adapt to his new circumstances and find lenders who are willing to work with him.
