Gordon Brothers, the global advisory, restructuring, and investment firm, announced today the appointment of Laurence Sax as Chief Operating Officer.

As COO, Sax will lead Gordon Brothers’ finance, accounting, treasury, financial planning, corporate development, and information technology functions.  He brings over 30 years of operating, finance, and turnaround and restructuring experience to the firm.

U.S. health officials say Americans should wear masks in public to combat the coronavirus. Financial support by CIT Group Inc. (NYSE: CIT) is helping two California apparel makers create masks that protect with style. Sanctuary Clothing and Karen Kane, both Los Angeles-based clients of CIT's Commercial Services business, have rolled out stylish face masks that can be worn by consumers to provide another layer of protection against COVID-19 transmission when out in public. Both clothing companies are using proceeds from sales of fashion masks to help finance donations of masks to hospitals and other healthcare facilities.

SFNet, in alignment with the International Factoring Association and Equipment Leasing and Finance Association has petitioned the Small Business Administration and Department of the Treasury to amend its Interim Final Rule prohibiting financial services companies from participating in the Paycheck Protection Program under the CARES Act.  In a letter to Secretary Mnuchin and Secretary Carranza, CEO Rich Gumbrecht vigorously reinforced SFNet’s prior calls for eligibility of “these non-depository lenders [who] extend economic lifelines to small businesses and are themselves now under financial stress.”  SFNet has engaged outside resources and is continuing to work with organizations with aligned interests in conjunction with this and other matters related to the CARES Act and other relief efforts.  We encourage everyone in our community to reach out to your representatives in Congress to support this imperative.  For more information on how to do so, contact Michele Ocejo at mocejo@sfnet.com.  Please click here to view the letter.

Ryan Jaskiewicz is CEO of 12five Capital, LLC. He started 12five Capital in early 2006 at the age of 23. Jaskiewicz attended University of Illinois at Chicago where he received a bachelor of arts in political science.

More than a week after Congress approved the largest fiscal stimulus in U.S. history, many companies still don't know if it will provide the financial lifeline they need to stay afloat.

Since the legislation passed on March 27, industry groups have been pressing policymakers to ensure a large chunk of their firms can actually benefit from a major lending program at the heart of the new law. Under the CARES Act, the Treasury is getting $454 billion in funds to provide credit protection for the Fed's emergency lending operations, a backstop expected to lead to about $4.5 trillion in Fed lending.

California Bank of Commerce (CBC) announces the launch of its Sponsor Finance Lending Division, led by well-known dealmaker Larry LaCroix. The division works closely with private equity firms (including Search Funds) and direct lenders to provide cash flow-based senior debt financing.

As of March 31, 2020,  the US Treasury Department has issued the application form and other guidance in connection with the Paycheck Protection Program which can be found on its website:  https://home.treasury.gov/cares

The materials on the website include:

●  Paycheck Protection Program Overview
●  Paycheck Protection Program (PPP) Information Sheet: Lenders
●  Paycheck Protection Program (PPP) Information Sheet: Borrowers
●  Paycheck Protection Loan Program application
●  Paycheck Protection Program – Interim Final Rule

SFNet’s CEO submitted a  letter to US Treasury Secretary Mnuchin and Administrator Carranza of the Small Business Administration, seeking affirmation of eligibility of non-bank lenders under the CARES Act. The letter seeks to further ensure that non-bank lenders are afforded all available protections under the Act as regulations are now established and implemented.  

(Editor’s note: Subsequent to this letter, the SBA has issued its ‘Interim Final Rule’ that makes businesses identified in 13 CFR 120.110, which includes financial services companies, ineligible for the Paycheck Protection Program.   SFNet will be seeking any recourse available to press the SBA to amend this position)

A corporate scramble for cash and massive injections of liquidity by the Federal Reserve are reverberating across the balance sheets of U.S. commercial banks, with commercial and industrial loans registering the biggest week-over-week increase in more than 45 years.

C&I loans jumped 7.4%, or $176.17 billion, during the week ended March 18, according to seasonally adjusted data in the Fed's latest H.8 report on bank assets and liabilities. The data covers a week during which the crisis caused by the new coronavirus pandemic escalated rapidly. The Trump administration declared a national emergency March 13, and states placed increasing restrictions on public gatherings and business activity aimed at slowing the spread of the virus.

At SFNet we realize how important it is to stay plugged into what’s happening on a local and global scale and understand how the latest developments are impacting our industry, especially during this time of unprecedented disruption. Although we can’t meet face-to-face right now, we can come together virtually to learn, exchange ideas and tackle some of the most pressing issues facing the secured finance community.

Over the next couple of months, SFNet is moving all in-person education courses online, introducing new webinars—both industry-focused content as well as trending topics of interest, and reformatting our planned live events to virtual platforms followed by re-scheduled in-person meetings at a later date.

I am old enough to remember the meltdowns that we had in the 1990s when prime rate of interest hit double digits and the American economy cratered when companies folded up and went out of business. Of course, I also remember 2008-2009 when the housing crisis hit and a lot of companies went out of business and banks lost a lot of money, etc. Here we go again.  We are now in the year 2020 and sitting on the brink of another emerging crisis.

Republic Business Credit works with the Azadian Group and Change Capital to provide flexible growth capital during the coronavirus pandemic. 

Encina Business Credit, LLC (“EBC”) announces the completion of a $75.0 million revolving credit facility for Horizon Global Corporation (“Horizon”). The facility will be used to replace an existing facility and will provide for ongoing working capital.

Jeffery Wacker, head of U.S. Asset Based Lending Originations, TD Bank, with contributed insights from Elizabeth Rust, Senior Economist, Keybridge in Washington D.C. and David Chmiel, Managing Director, Global Torchlight Limited from London, U.K.

Modell’s Sporting Goods. America’s oldest family owned and operated retailer of sporting goods, athletic footwear, active apparel and fan gear, today announced that the Company has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (“Chapter 11”) in the U.S. Bankruptcy Court for the District of New Jersey on March 11, 2020.
“We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates..." Modell’s Chief Executive Officer, Mitchell Modell, said.