CARES Act

Banks, PPP recipients caught in bind between two SBA rescue programs

Businesses that received Paycheck Protection Program loans and Economic Injury Disaster advances discovered later they can't get full forgiveness. Lenders want the rules changed.

By Neil Haggerty

October 26

Leveraged loans

Leveraged lending has avoided pandemic hit. Will that last?

Defaults have been milder than expected thanks to government relief and stricter underwriting. But with the crisis dragging on and policymakers unable to agree on a stimulus plan, loans to highly indebted companies remain at risk.

By Hannah Lang

October 15

Paycheck Protection Program

Stalled stimulus talks put bankers on edge

Executives are urging Congress and the White House to prioritize another round of help for businesses amid concerns that the continuing restrictions on reopening could lead to more loan defaults.

By Neil Haggerty

October 13

“When the full Senate returns on October 19th, our first order of business will be voting again on targeted relief for American workers, including new funding for the PPP," said Senate Majority Leader Mitch McConnell.

Earnings

Murky economy complicates credit outlook at JPMorgan Chase

The banking giant may be sitting pretty with plenty of money reserved for bad loans — or it could have to set aside billions more in coming quarters. It hinges on an ongoing U.S. recovery and the passage of a new stimulus package.

By Jon Prior

October 13

Paycheck Protection Program

SBA streamlines forgiveness for PPP loans of $50,000 or less

Lenders welcomed the move as a helpful first step but are still urging policymakers to develop a broader, simpler process for expediting the approvals of loans extended to troubled small businesses under the Paycheck Protection Program.

By John Reosti

October 9

Servicing

Fed’s Wells Fargo review should consider forbearance snafu: Warren

Customers suffered when they were placed in mortgage relief plans without their consent, the Massachusetts senator says. She urged the Federal Reserve to take the blunder into account as it weighs when to lift other sanctions against the bank.

By Kevin Wack

October 1

Wells Fargo’s letter states that the bank has received approximately 1,600 complaints from customers saying that they did not request a forbearance.

CARES Act

Powell, Mnuchin urge more congressional action to deliver pandemic aid

Capping a series of appearances on Capitol Hill this week, the Federal Reserve chair and Treasury secretary emphasized that they don’t have the authority to reallocate CARES Act funds to assist small businesses on their own.

By Hannah Lang

September 24

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin said their power to limit fallout from the pandemic was limited.

Main Street Lending Program

Lawmakers urge Fed, Treasury to let CRE borrowers tap Main Street loans

Commercial real estate companies are among those left out of the Federal Reserve’s middle-market relief program, but House members said they need government-backed financing to navigate the pandemic as much as anyone.

By Hannah Lang

September 22

Fed Chairman Jerome Powell said the central bank had previously concluded that asset-based borrowers were able to secure financing elsewhere. Treasury Secretary Steven Mnuchin said “small hotels do not fit into [the Main Street Lending Program] because they already have other indebtedness.”

Loan modifications

Bankers urge extension of CARES Act reg relief

Measures designed to give banks and credit unions more flexibility to help customers weather the coronavirus pandemic are set to expire Dec. 31 unless Congress renews them.

By Neil Haggerty

September 18

Main Street Lending Program

Fed, Treasury clarify underwriting rules for Main Street loans

The Federal Reserve and the Treasury Department released a set of FAQ's aimed to clearing up misconceptions about the Main Street Lending program and encouraging more bank participation.

By Hannah Lang

September 18