The condition of small and medium-size firms implies a potential inflection point in the nascent economic rebound following the near shutdown of the economy last spring. Without further reform and support of the signature Paycheck Protection Program (PPP)—which provided a vital lifeline to those firms during the worst of the pandemic—there will be an ... READ MORE >
Paycheck Protection Program
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 >
What PPP loan data reveals about business and professional services and the economic recovery
Business and professional services (BPS) firms borrowed more Paycheck Protection Program loans through June than all but four segments of the U.S. economy. Industry executives took advantage of federal assistance in an effort to maintain their capabilities and client relationships by retaining their people. And considering that, according to Bloomberg, ... READ MORE >
The Paycheck Protection Program still has legs after Congress approves extension
The $659 billion Paycheck Protection Program, which was scheduled to stop accepting new applications on Tuesday even though it had more than $134 billion left to distribute as of June 27, could now be extended through Aug. 8, after the Senate and the House approved the measure. The program has been a central pillar of the $2.39 trillion CARES Act, ... READ MORE >
Bill would loosen restrictions in Paycheck Protection Program, making loan forgiveness easier
In a bipartisan vote, the House of Representatives passed the Paycheck Protection Program Flexibility Act on May 28, loosening some restrictions on borrowers and making it easier to qualify for loan forgiveness. Under the bill, businesses would be given more time to use the loans and greater flexibility to make needed expenditures and still qualify for ... READ MORE >
Main Street Lending Program should be attractive to eligible family offices
(This was originally published May 19 but was updated June 15 when the Federal Reserve announced the immediate launch of the Main Street Lending Program and on June 8 when the Fed announced expanded program terms.) In the last few weeks, family offices in the United States have gone through a number of transformative changes due to the disruptive nature ... READ MORE >
As SBA accepts new applications for Paycheck Protection Program, private equity is not eligible
As the Small Business Administration began accepting applications on Monday for loans under the second round of financing for the Paycheck Protection Program, private equity firms and hedge funds will not be eligible. The SBA released additional guidance for the program on April 24, settling the questions of some private equity and hedge fund managers who ... READ MORE >
For real estate companies, the new Paycheck Protection Program funding is not a cure-all
It took about two weeks for the $349 billion Paycheck Protection Program, a federal aid package aimed at shoring up small and medium-size businesses, to run out of money after it was launched on April 3. Now, the Senate has approved another $310 billion for the program. The new round of financing is part of a broader $484 billion package passed on ... READ MORE >