An algorithm for solving steady, finite rate chemistry, flow problems is presented. The scheme eliminates the expense of inverting the large block matrices that arise when species conservation equations are introduced. This is accomplished by replacing the source Jacobian matrix by a diagonal matrix that is tailored to account for the fastest reactions in the chemical system. A point-implicit procedure is discussed and the algorithm is included into the LU-SGS scheme. Solutions are presented for hypervelocity reentry and hydrogen-oxygen combustion. For the LU-SGS scheme a CFL number in excess of 10,000 has been achieved.