What is happening with the Main Street Loan Programs?
Many of us have been wondering what has been happening with the Main Street Loan Programs.
Our series of articles on the Main Street Loan Programs have included:
April 23, 2020: Coronavirus Response: Main Street Loan Program
May 8, 2020: Covid-19: Main Street Loan Program Important Update
July 8, 2020: Lenders Participating in the Main Street Loan Program
These articles describe the various loan programs available under the MSLP, which lenders are accepting MSLP applications, and how to calculate eligibility and evaluate loan sizing.
We have all been wondering how many of these loans have been closing.
As of August 10, 2020, the Boston Fed has indicated 522 lenders are registered in the program. The majority of the lenders registered are in the $1 billion to $10 billion of assets size range, followed by the $250 million to $750 million of assets size level.
Analysts have been surprised that the smaller and mid-size banks have been excitedly registering for the Main Street Loan Program.
As of August 10, 2020, the Boston Fed reports that $857 million of loans are either closed, committed or under review.
The first loans under the program were purchased on July 27, 2020, and the loan volumes have begun to grow after what many considered a slow start. The American Banker published this update on closed loans on August 19, 2020.
The lender who had closed the most loans under the program is the City National Bank of Florida in Miami.
Closing a Main Street Lending Program requires attention from both the borrower and the lender – attention to performance, and attention to detail. This is a loan program not a grant program.