- PPPLF Update and Summary
- California Advocacy Alert
- SBA Sets Window From 4 p.m. Through Midnight Tonight to Accept PPP Applications From Borrowers of Small Lenders Only
- Highlight of Changes Made to Main Street Lending Program
- Main Street Lender Portal Includes the Additional Functionality to Support Multi-borrower Loan Structures
SFNet Responds to Main Street Lending Program Guidance
April 15, 2020
Source: SFNet
In a letter to Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell, SFNet CEO Rich Gumbrecht provided recommendations to help facilitate the objectives of the newly introduced Main Street Expanded and New Loan Facilities as set out by the Federal Reserve. Given that many of the potentially eligible borrowers who would benefit from the Programs have existing collateralized debt, SFNet reasoned that it is critical that the Programs specifically address the relationship between existing secured loans and the additional loans provided for in the Programs. The inability to do so would “limit access to this critical source of capital, imperiling jobs and jeopardizing economic recovery”. The benefit of clarifying and amending these protections would “mitigate the current economic hardship being experienced by [Main Street companies] and bolster this critical part of the capital supply chain”. SFNet further positioned that non-depository lenders should be eligible lenders to maximize the benefit of the Programs.
Click here to read the letter.
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