The Sonoma County Economic Development Board received its newest forecast for our local economy.  It is the most optimistic in years, with technology, tourism and even our wine industry slated to lead the local economy out of our recession.  The County’s total employment is at its highest level since the end of 2009.  Technology, particularly medical device firms, remains a key industry driving growth in Sonoma County.  Demand for new medical technologies and drugs will be a positive driver.  Local hotel occupancies are higher than a year ago and they no longer rely on discounted rates to fill rooms.  Off and on-premise wine sales have increased in recent months.  The smaller harvest will help to reduce wine inventories in 2011, following 2 years of an oversupply of quality wines.  However, higher savings rates will make the shift to value permanent for many wine drinkers, limiting any gains in pricing power for high-quality wine makers, even as job and income growth accelerates.  Our Per Capita Income is $47,755 in Sonoma County, higher than California’s $44,038, and higher still than the US at $40,673. 

Sonoma County will maintain its high quality of life and attractiveness for high-skilled workers.  However, high housing costs will keep the county as a below-average performer, at times, over the extended forecast.  It is anticipated that our unemployment rate will be below 9% by the middle of 2012.  Sonoma County is still one of the best places to reside and work.

This weekend is Memorial Day – there are lots of activities to consider: Bodega Bay International Short Film Festival on 5/28-29, call 707-827-3332; Antique Fair in Healdsburg, call 707-578-7772; regular tours at Luther Burbank Home & Gardens, call 707-524-5445.

Nothing like the death of the most wanted man in the world to take our minds off the budget & economy.  Most likely we will see retaliations from various al Qaeda groups but hopefully they will be minimal.  I was reminded on the news last night that our country should not be defined by what happened on Sept. 11^th but by what happened on July 4^th.  We should never forget Sept. 11^th; however, focusing on the future might ease some of the pain of the past. 

So, back to business.  What does credit have to do with private money lending?  Credit is a nebulous condition and a casualty in today’s economy.  Private money lenders consider the collateral securing the loan as the primary factor in lending; however, the borrower’s character and capacity to repay, along with an exit strategy, are very important in making the ultimate decision to lend to a borrower.  If one area is weak, the other needs to be stronger; it is a fine-line balancing act, a lot like politics.

There are some events this weekend worth considering:  The Human Race, 8 am, call 707-573-3399; don’t forget Mothers Day on Sunday.  Get outside and enjoy the gorgeous Sonoma County weather!