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On Tuesday, April 21, the Senate passed an amendment to the CARES Act that, among other things, would amend certain provisions of the Paycheck Protection Program (“PPP”), economic injury disaster loans, and emergency grants. The amendment is expected to pass the House later this week and the president has indicated he would sign it. In some ways, the amendment is as notable for some of the things it did not do – it did not create eligibility for financial services firms including community banks and secured lenders to borrow PPP loans, and it did not include rumored restrictions on larger borrower’s access to PPP – as it is for what it did do (increase funding and create a set-aside of PPP guarantees for PPP loans made by certain small and community development lenders).

SFNet Annual Factoring Industry Survey Results

It is that time of year where we present the results of the Annual Factoring Industry Survey. Last year this commentary was written after the pandemic had set in, the country was in lockdown, historical results were completely disconnected from the unfolding reality of 2020. A year later, we look back and reflect on a surreal year. The factoring sector experienced unprecedented declines in volume (as did most secured lending), the highest level of write offs in 15 years and yet remained profitable, thus demonstrating the durability of the business model and its suitability as a financing tool for uncertain and turbulent times. Last year we noted that factoring is an “all-seasons competitor”, and that factoring would likely grow and thrive in the turbulent time to come. Looking back, we see that though the industry did not grow – in fact, it shrank – it did thrive and provided a valuable source financing to many businesses adversely impacted by the pandemic.

Crestmark Announces Launch of Healthcare Financial Services Division led by Ray Zilke

Crestmark is pleased to announce the launch of a new division offering medical accounts receivable financing to businesses in the healthcare industry. The newly created division will be led by Ray Zilke, first vice president, division manager. Zilke is based in Franklin, Tennessee, and will report to Steven Tomasello, Crestmark executive vice president. Zilke joined Crestmark in November 2005 as an account executive for the Midwest region at Crestmark’s Troy offices.

SFNet Presents Live Online Women in Secured Finance Conference: Where Women Rise

On June 16 & 23, SFNet’s live online Women in Secured Finance Conference will bring together women who are looking to grow professionally, share experiences, celebrate successes and advocate for each other.

In response to feedback the WISF Committee has received from previous WISF conferences, SFNet is reimagining this year's event format by partnering with Corporate Class, Inc. to offer attendees an interactive, customized workshop focused on developing executive presence along with career progression and leadership skills.

WISF Committee chair, Paula Currie of PNC Bank, said, “After the past year of remote living and working, we all could use a recharge to help us get back in the game. This year’s WISF conference, promises to do just that! The two-day interactive workshop is facilitated by experienced and renowned instructors who will help you build the skills, tools and confidence needed to realize your full potential and take your career to the next level.”

SFNet to Host “Navigating the End of LIBOR: Recent Developments and Market Updates” Webinar Tomorrow

SFNet will host a webinar tomorrow, May 21, from 12:00 p.m. – 1:00 p.m., EDT titled "Navigating the End of LIBOR: Recent Developments and Market Updates." This webinar is free for employees of SFNet member organizations and $95 for non SFNet members.

As we approach December 31, 2021, the financial markets are closer to the end of LIBOR for most currency and tenor settings. This webinar will provide important updates regarding LIBOR transition, including the extension of U.S. Dollar LIBOR for the dominant tenors to June 30, 2023, developments on SOFR and other overnight RFRs to replace IBOR rates and the emergence of certain “credit sensitive rates.” Panelists will also discuss recent developments impacting fallback provisions in documentation, including for business loans and derivatives, as well as the status of the New York State and Federal LIBOR discontinuation legislation.

CIT Serves as Sole Lead Arranger of $17.4 Million Financing for Medical Office Buildings in Bakersfield, California

CIT Group Inc. (NYSE: CIT) today announced that its Healthcare Finance business served as sole lead arranger on a $17.4 million loan to finance the acquisition of a portfolio of three medical office buildings in Bakersfield, California.

The medical office building portfolio includes more than 65,000 square feet, is fully leased and is located on the campus of Bakersfield Heart Hospital. A majority of the building tenants are practice groups affiliated with the hospital.

Gerber Finance Closes New Deal Under its Naturally Gerber Division

Gerber Finance, an eCapital company and leading finance partner for companies experiencing accelerated growth, today announced it closed a $6MM line of credit to natural products company, Puracy, a plant-based personal care and cleaning products company. The deal was managed under the Naturally Gerber Finance division, which works with companies within the fast-growing natural products space, from clean label, organic and non-GMO products, to sustainable design and packaging.

North Mill Capital Provides $15 Million Accounts Receivable Factoring Facility

North Mill Capital announced it provided a $15,000,000 accounts receivable factoring facility to provider of oral and personal hygiene products.

The funds were used to pay off the previous lender and provide additional working capital to support the Company's growth. NMC also entered into an inter-creditor agreement with a purchase order financing partner to help meet substantial near-term growth needs.

Encina Business Credit Provides $115 Million Revolving Credit Facility to Retailer

Encina Business Credit, LLC announced today that it is the Revolving Agent on a $115 million senior secured credit facility used to support the acquisition of a mid-sized discount retailer of home décor.

The revolving line of credit, which is collateralized by accounts receivable and inventory was used to support the purchase price and ongoing working capital needs of the borrower.

Fifth Third Business Capital Provides $21.5 Million for Spray Products

Fifth Third Business Capital, a division of Fifth Third Bank, announced it acted as sole lender and administrative agent on the funding of a new $21,500,000 senior credit facility to Conshohocken, Pennsylvania-based Spray Products Corporation and affiliates.=

Meet YoPro Chapter President Drew Loughlin of SFNet's New York Chapter

Avi Levine, vice president at Star Funding, Inc. (pictured left) and Andrew (Drew) Loughlin, vice president, People's United Bank, catch up and discuss Drew’s involvement with the SFNet New York Chapter over the years. Drew has currently served as the President of the Chapter for the past two years. Drew can be reached at andrew.loughlin@peoples.com and Avi at alevine@starfunding.net.

Prominent Banking Partner Rejoins Latham & Watkins In New York

Latham & Watkins LLP is pleased to announce that Jennifer Ezring has rejoined the firm's New York office as a partner in the Banking Practice. Ezring has significant experience advising commercial and investment banks on leveraged finance and asset-based lending transactions.

Monroe Capital Closes $454.35 Million Collateralized Loan Obligation Transaction

Monroe Capital LLC (“Monroe”) today announced the closing of a $454.35 million term debt securitization known as Monroe Capital MML CLO IX, LTD. The term financing was Monroe’s fourth CLO completed since March 2018 and is secured by a portfolio of middle market senior secured loans.

Northpoint Commercial Finance Expands Product Offering with Launch of Asset Based Lending

Northpoint Commercial Finance (“Northpoint”), a North American diversified financial services company, has broadened its financing solutions to include asset-based lending for U.S.-based middle-market companies. Northpoint is a market leader in inventory financing to manufacturers and dealers across the United States and Canada.

Northpoint will offer senior secured revolving credit lines and term loans ranging in size from $2 million to $20 million to borrowers across a wide range of industries. Industry veteran Robert Wagner, Northpoint General Manager and Head of Asset-Based Lending, will lead a team of seasoned ABL professionals.

Top 5 Invoice Finance Frauds

Aaron Hughes looks at some of the ways directors might misuse their invoice finance facilities and how lenders can stem any potential losses.

Gordon Brothers Welcomes Joe Massaroni as Conrad Lauten Retires

Gordon Brothers, the global advisory, restructuring and investment firm, has named Joe Massaroni as Director, Business Development as Conrad Lauten retires.

Based in Atlanta, Massaroni will lead efforts to develop and maintain strong client relationships across the Southeast. Massaroni joins Gordon Brothers with decades of experience in secured finance. He’s worked at several lending institutions throughout his career and previously served as director and team leader responsible for managing key relationships and more than $4 billion of account commitments.

Middle-Market Companies Find Opportunity in Food & Beverage Disruption

Capital One executives discuss how innovation in the food & beverage sector are making it an industry lenders don’t want to ignore.

The “New Normal” Roundtable

What challenges have industry executives been up against since the pandemic hit and what kind of future do they envision for the industry? TSL spoke with several SFNet members: Jason Hoefler, managing director/asset-based lending, BMO Harris Bank; Candice Hubert, senior vice president of business development, Republic Business Credit; Mark Polinsky, executive vice president and co-founder of Gateway Trade Funding; Georgia Quenby, partner, Morgan Lewis & Bockius; Stuart Rosenthal of Prestige Capital; and Dan Tortoriello, executive vice president/chief operating officer of North Mill Capital.

The Transformative Power of Servant Leadership in Modern Business

Discover how servant leadership is reshaping today’s business world. This article explores the core principles behind this transformative approach, shares real-world examples from top companies, and reveals why prioritizing the growth and well-being of your team can unlock extraordinary results.

Managing C&I Risk in a Time of Pandemic

Commercial lenders will face many new and unique challenges over the coming months as the full effects of the coronavirus pandemic are felt throughout the economy. For commercial customers cash flow, liquidity, and credit tightening dramatically across industries is the new normal. In these uncertain times, no segment of the bank commercial portfolio is under as much short- and long-term risk as the commercial and industrial (C&I) line of credit segment.

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