The execution of PPP was poor. A set of well-defined terms provided by Treasury to the SBA and subsequently to the lending financial institutions could have avoided unintended consequences such as various private equity firms, asset managers, law firms and the like "borrowing" money (we use quotation marks as PPP recipients are not required to … Continue reading Questionable PPP Borrowers – A Partial List
We have published a list of businesses that received PPP loans of $150 thousand or greater. The list includes 616, 218 entries. Access the Excel file below. Today Treasury and the SBA released details of the various businesses that borrowed PPP funds. Included in the Excel detail are: loan size ranges, business names and addresses, … Continue reading List of PPP Loan Recipients
We have a growing demand problem as a result of millions of jobs lost to the COVID pandemic (Personal Consumption -13.6% March to April 2020). Many of these jobs are not coming back as companies close permanently, realize they can do more with less and lose market share to competitors. Charts, video and podcasts at … Continue reading Houston, We Have A Demand ProblemPremium
The economy will not enjoy a "V" recovery. A combination of defaults, bankruptcies, market disruption and high unemployment will make for a gradual recovery. PPP and Fed liquidity will eventually expire. Admittedly the Fed will likely inject more capital into the economy growing its already bloated $6.6 Trillion balance sheet. At some point this all … Continue reading A “V” Recovery Is Not In the Cards
Bank of America (tkr: BAC) CEO Brian Moynihan provided an update about the SBA / PPP loans (tranche II) after Friday's market close. Approximately $24 billion will be extended to 231,000 small businesses. 50,000 promissory notes have been issued and the remaining 180,000 will be extended over the weekend (additional information in the table below). … Continue reading SBA / PPP Small Business Loan Update
Congress will vote on a $484 Billion stimulus plan later this week which includes $250 Billion for the Paycheck Protection Program ("PPP") and $60 Billion for the SBA's Disaster Relief Fund. Congress and the Trump administration are racing to approve this stimulus package. The speed to execute this stimulus is driven by the fact that … Continue reading Expect More SMB Failures Despite Latest $310B SBA Relief
The macro trade where stocks fell in unison in late March only to recover in unison in early April is doomed to fail. We will re-test market lows. A staggered economic recovery will require that investors identify "winning" stocks coming out of the downturn and avoid "value traps". Life is about who you choose to … Continue reading Investors: Sharpen Your Pencils!
The SBA lacks the infrastructure to efficiently process the $350 billion capital allotment it received from the recent $2 trillion economic stimulus plan (read our breakdown here). The SBA's loan origination Website is overwhelmed from a bandwidth standpoint. The SBA's Website regularly times out or crashes before providing loan origination IDs to bank partners. It … Continue reading SBA Loan Processing – Every Which Way But Smooth