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 >
Federal Reserve expands scope of Main Street Lending Program
With the Main Street Lending Program likely to be launched in the coming days, the Federal Reserve has once again announced updates that expand the scope of the program. The adjustments include lengthening the term of the loans, easing the repayment rules and expanding the sizes of the loans, all of which will expand the pool of available borrowers and ... READ MORE >
Main Street Lending Program details released; program expected to start soon
The Federal Reserve took an important step toward the launch of the long-awaited Main Street Lending Program (MSLP) on Wednesday with the release of details about how the program will work. Based on these new details, which were released by the Boston Federal Reserve, and recent comments from Eric Rosengren, its president, we believe the launch of the ... READ MORE >
As demand for commercial loans rises, so do underwriting standards
The growing uncertainty surrounding the coronavirus pandemic has created a surge in demand for financing from commercial firms, according to the latest Federal Reserve Senior Loan Officer Survey and to proprietary research recently released by RSM. The Fed's survey showed that demand for loans from large and medium-size firms, as well as small firms, ... READ MORE >