I don't believe we are interested in participating in the Main Street program at this time. We have had enough problems with the PPP loan program. The revised loan forgiveness process is cumbersome for small business entities. Based on the problems we have with the PPP forgiveness program, I am not interested in jumping into another government loan program. The bureaucratic red tape associated with Covid-19 governmental loan programs isn't worth the effort. The government must simplify their lending processes in a timely fashion if they expect banks to participate.
Robert A. Perryman
President
First State Bank
200 N. Brazosport Blvd.
Clute, TX 77531
(979) 265-2511 ext. 2904
FAX (979) 265-5101
NMLS #801582
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Original Message:
Sent: 6/22/2020 9:47:00 AM
From: Barb Rehm
Subject: Tuesday Topic: Main Street "Dead on Arrival"
The Fed's new Main Street Lending facility is "dead on arrival" one borrower told The Washington Post. He blamed banks that are either not participating, only making loans to existing customers, or don't even know about the new program, which offers loans of at least $250,000 to companies with up to 15,000 employees. "We have limited interest from community banks nationwide," ICBA's Paul Merski told the newspaper. "It's a very challenging and complex program." Two former Fed officials are recommending a slew of changes including lowering the minimum loan size, giving companies more than five years to repay, lowering the interest rates on loans for higher-quality, less-risky companies, and offering banks higher fees as an incentive to make more of these loans. What do you think about the new Main Street program? Will your bank participate? Why or why not? Let us know.
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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network, LLC
Arlington VA
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