Yale School of Management

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Paycheck Protection Program spread loans widely, if not evenly

August 7, 2020
Congress charged the Paycheck Protection Program (PPP), enacted under the Coronavirus Aid, Relief, and Security (CARES) Act on March 27, with lending to small businesses stricken by the effects of COVID-19, and authorized private lenders to facilitate an unprecedented flow of Small Business Administration (SBA)-guaranteed loans. On this first objective, the program delivered, approving nearly 4.9 million loans with a total volume just north of $521 billion. But its performance, its efficacy, and its efficiency remain unsettled questions. Continue reading “Paycheck Protection Program spread loans widely, if not evenly”

Senate Republicans introduce HEALS Act, next round of COVID-19 response

August 6, 2020
On July 27, Senate Republicans introduced components of the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act. The HEALS Act would extend and alter many of the programs included in the CARES Act, the third COVID-19 response bill. Some key programs, such as enhanced unemployment insurance (UI) benefits, expired on July 25. The bill also introduces new provisions related to education spending and liability protections.  Continue reading “Senate Republicans introduce HEALS Act, next round of COVID-19 response”

Federal Reserve extends temporary US dollar liquidity swap lines and FIMA repo facility to March 31, 2021

August 4, 2020
On July 29, the Federal Reserve announced the extensions of its temporary U.S. dollar liquidity swap lines and the temporary repurchase agreement facility for foreign and international monetary authorities (FIMA repo facility). Now these facilities are set to expire on March 31, 2021. Continue reading “Federal Reserve extends temporary US dollar liquidity swap lines and FIMA repo facility to March 31, 2021”

Fed Expands Main Street Lending Program to Include Nonprofits

July 20, 2020
On July 17, the Federal Reserve expanded eligibility for the Main Street Lending Program (MSLP) to include nonprofit organizations such as educational institutions, hospitals, and social service organizations. The Fed will purchase 95% participations in loans to nonprofits under terms that are similar to terms it previously announced for for-profit companies, with additional criteria tailored to non-profit organizations. Continue reading “Fed Expands Main Street Lending Program to Include Nonprofits”

No bank should be paying dividends right now

July 14, 2020
This blog was published today in the American Banker . In the midst of one of the fastest and deepest economic declines in U.S. history, the largest banks are expected to pay out about $14 billion in dividends in the third quarter, while remaining under a cap imposed by the Federal Reserve in response to the coronavirus pandemic. Continue reading “No bank should be paying dividends right now”