Consumers resumed borrowing after a pullback in the second quarter during the onset of the pandemic, according to the New York Federal Reserve’s third-quarter report on household debt and credit balances. The net increase of $87 billion in total household debt outstanding was driven primarily by growth in mortgages, with an $85 billion increase, and auto ... READ MORE >
Federal Reserve eases Main Street Lending Program terms to encourage participation
The Federal Reserve on Friday announced changes to the Main Street Lending Program intended to make financing more readily available to small and medium-size businesses struggling amid a resurgence of coronavirus cases. The changes come as negotiations over another round of fiscal aid drag on in Congress and as businesses face the prospect of ... READ MORE >
SBA announces simplified PPP loan forgiveness
Some businesses that accepted financing under the Paycheck Protection Program now have a streamlined path to receiving the promised forgiveness of those loans, under new guidelines released late Thursday. The Small Business Administration, in consultation with the Treasury Department, announced updated forgiveness instructions for Paycheck Protection ... READ MORE >
CHART OF THE DAY: TSA throughput highlights consumer uncertainty
As the dog days of summer near their end, traditional forms of data such as the Conference Board’s consumer confidence reading and Labor Department's weekly jobless claims are starting to show strain in the U.S. economic recovery. High-frequency, real-time metrics such as TSA Traveler throughput data and OpenTable restaurant reservation bookings underscore ... READ MORE >
Fintechs helped with the Paycheck Protection Program. Why not the Main Street Lending Program?
What makes a great partnership? There are a number of examples of great partnerships that have worked toward a common goal. In the sports world, think of Michael Jordan and Scottie Pippen or Joe Montana and Jerry Rice. In business, there is the recent success between Apple and Goldman Sachs in launching the Apple Card. As small and medium-size ... READ MORE >
RSM’s exclusive MMBI survey reveals how the Main Street Lending Program can be improved
Growing uncertainty surrounding another round of fiscal aid in Washington has reignited concerns about the Main Street Lending Program and whether it can help small and midsize organizations find bridge financing as the COVID-19 crisis continues. The program remains woefully undersubscribed. Through August 19, banks participating in the MSLP have ... READ MORE >
Without adjustments, Main Street Lending Program is unlikely to be mainstream
Unlike the strong demand for the Paycheck Protection Program, which saw $350 billion in aid snatched up in the 13 days following its debut, interest in the Main Street Lending Program has been more muted; less than $100 million in aid was requested in the program’s first month, according to data from the Federal Reserve. But that may change, possibly even ... READ MORE >
An SOS for commercial real estate
As the length and severity of the coronavirus pandemic continue to wreak havoc on the economy, real estate deals are at best being reworked and at worst falling apart altogether. The data tells a clear story: Transactions are down almost 70% in the second quarter, according to Real Capital Analytics (RCA), a commercial real estate research firm, ... READ MORE >
Alternative data is flashing warning signs of a slowing economy
The decisions made in May to reopen parts of the country without proper safety protocols have brought about a resurgence in COVID-19 cases that has already swept through more than 40 states with no signs of stopping and now has the U.S. economy stalling. The evidence of this slowdown has been apparent for some time now, but to see it requires a look ... READ MORE >
No vaccine, no recovery: The long road back
It is becoming quite clear that absent an accessible and widely distributed vaccine, there will be no complete economic recovery. What originally was thought to be a 15 week problem has quickly evolved into something that looks more like a 15-month challenge. The premature reopening of the U.S. economy has resulted in an intensification of the pandemic, ... READ MORE >