Small to midsize business seeking relief from economic woes due to the Covid-19 pandemic have tapped $247.5 billion from the government’s Paycheck Protection Program through April 13, less than two weeks after the program began accepting applications, according to data released by the Small Business ... READ MORE >
What lenders know about the Main Street Lending Program, and the questions that remain
On April 9, the Federal Reserve announced the Main Street Lending Program, the latest in a series of liquidity commitments to bolster the economy during the coronavirus pandemic, particularly for small and medium-size businesses The program is backstopped by $75 billion in equity investment that will ... READ MORE >
How banks can help their customers navigate the coronavirus shock
As banks begin to help their small and midsize commercial borrowers obtain financing under the CARES Act, the reality is setting in just how severely the economy is being disrupted by the coronavirus. Even though the CARES Act provides a stimulus package of $2.39 trillion, or 11.4% of gross ... READ MORE >
How to become a qualified lender under the Paycheck Protection Program
(Note: this article was originally published on April 1, and was most recently updated on May 5.) The federal government recently approved the CARES Act, a $2.2 trillion fiscal stimulus meant to address the economic damage of the coronavirus. Included in that package is the Paycheck Protection Program, ... READ MORE >
The coronavirus impact on the financial services sector
The spread of the coronavirus and its accompanying shock to the global economic system has spurred widespread fear within the financial services sector. The disruption has led senior leaders at financial services firms to ask some basic questions, from how do we keep our employees safe, to what does our ... READ MORE >
As the coronavirus spreads, bond markets take notice
For a while last year, it seemed that yields on U.S. Treasuries were on an upward path as trade tensions with China eased and recession fears calmed. But all that has changed as fears over the outbreak of the coronavirus in China have combined with moderated corporate earnings and continued delays over ... READ MORE >
As American farmers struggle, lenders become advisers
This year has been one to forget for the American farmer. Weather, trade and depressed commodity prices have combined to weigh on farmers’ abilities to generate income not only to support their family and way of life, but also to finance the debt they carry to operate their enterprises. It has been a ... READ MORE >
Declining demand for commercial loans points to continued uncertainty
Demand for commercial loans softened dramatically in the third quarter, as noted by both the Federal Reserve Bank of New York and Federal Deposit Insurance Corporation, signaling that businesses continue to be cautious about making capital investments amid a not-yet-signed trade deal with China and ... READ MORE >
Buzz on pot legislation fades as focus turns to vaping
It was a rare source of consensus in a divided Congress: in September, the House of Representatives passed a bill designed to ease the flow of money to cannabis companies around the nation. By stripping away federal penalties on providing financial services to these businesses, the bill would go a long ... READ MORE >
Low rate environment poses challenge for banks
On July 30, the Federal Reserve announced a 25-basis-point reduction in the federal funds rate. Federal Reserve Chair Jerome Powell characterized the move as an “insurance” cut to help extend what is now a record-long U.S. economic expansion amid economic headwinds related to a slowing global economy and ... READ MORE >