1. Home
  2. Data
  3. Senior Loan Officer Opinion Survey on Bank Lending Practices
  4. September 2020 Senior Loan Officer Opinion Survey on Bank Lending Practices

Senior Loan Officer Opinion Survey on Bank Lending Practices

Chart Data PDF RSS DDP

Table 1 | Chart Data
Table 1 (PDF) | Charts (PDF)

Exhibit 1: Inquiries, Participation, and Registration for the MSLP

Figure 1: Changes in Inquiries for C&I Loans Since Mid-June, by Borrower and Bank Size

Change Percent of Respondents
Large banks Other banks
MSLP PPP Non-MSLP MSLP PPP Non-MSLP
Increased substantially 9.7 0.0 0.0 9.4 11.3 0.0
Increased somewhat 16.1 9.7 3.2 22.6 11.3 0.0
About the same 35.5 29.0 35.5 35.8 32.1 24.5
Decreased somewhat 35.5 35.5 38.7 13.2 17.0 5.7
Decreased Substantially 3.2 22.6 9.7 9.4 28.3 3.8
No inquiries 0.0 3.2 12.9 9.4 0.0 66.0

Figure 2: Share of C&I Loan Inquiries Approved

Share Percent of Respondents
Large banks Other banks
More than 60% 31.0 15.4
Between 40% and 60% 34.5 21.2
Between 20% and 40% 13.8 15.4
Between 10% and 20% 0.0 17.3
Less than 10% 20.7 30.8

Figure 3: Share of MSLP Loans in the Approved C&I Loans

Share Percent of Respondents
Large banks Other banks
More than 20% 0.0 3.8
Between 10% and 20% 0.0 1.9
Between 5% and 10% 3.1 0.0
Between 2.5% and 5% 6.2 0.0
Less than 2.5% 28.1 15.1
No loans 62.5 79.2

Figure 4: Operational Status, by Bank Size

Operational Status Percent of Respondents
Large banks Other banks
Registered Not registered Registered Not registered
Registered, underwriting and submitting 45.2 0.0 18.9 0.0
Registered, working to operationalize 25.8 0.0 26.4 0.0
Registered, evaluating 0.0 0.0 24.5 0.0
Registered, only if conditions worsen 9.7 0.0 7.5 0.0
Not registered, likely to register 0.0 3.2 0.0 1.9
Not registered, will if conditions worsen 0.0 3.2 0.0 3.8
Not registered, will not register 0.0 12.9 0.0 17.0

Figure 5: Outlook for Inquiries and Approvals of MSLP Loans

Outlook Percent of Respondents
Large banks Other banks
Inquiries Approvals Inquiries Approvals
Increase substantially 0.0 0.0 1.9 0.0
Increase somewhat 24.2 6.1 32.1 13.2
Stay about the same 57.6 75.8 52.8 58.5
Decrease somewhat 6.1 0.0 5.7 0.0
Decrease Substantially 3.0 0.0 0.0 3.8
No inquiries/loans 9.1 18.2 7.5 24.5

Exhibit 2: Reasons Why Registered Banks Did Not Approve MSLP Loans

Figure 1: Reasons Why Registered Banks Did Not Approve MSLP Loans

Reason Percent of Respondents
Not Important Somewhat Important Very Important
Firm in poor financial condition pre-COVID-19 10.5 21.1 68.4
Firm too severely impacted by COVID-19 22.8 38.6 38.6
PPP loan approved instead of MSLP 69.1 18.2 12.7
Firm's planned use of MSLP not sound 31.6 22.8 45.6
Key terms not attractive to the borrower 13.8 32.8 53.4
Key terms not attractive to the lender 63.6 18.2 18.2

Figure 2: Key Terms Not Attractive to the Borrower, as Reasons Why Registered Banks Did Not Approve MSLP Loans

Term Percent of Respondents
Not Important Somewhat Important Very Important
Borrower leverage too high 12.5 20.8 66.7
Interest rate too high 80.9 10.6 8.5
Principal amortization too steep 34.0 44.7 21.3
5-year maturity term too short 53.2 31.9 14.9
Minimum loan size too high 70.2 21.3 8.5
Origination and transaction fees too high 71.7 21.7 6.5
Employee retention too restrictive 55.3 36.2 8.5
Certifications and covenants too restrictive 13.0 32.6 54.3

Figure 3: Key Terms Not Attractive to the Lender, as Reasons Why Registered Banks Did Not Approve MSLP Loans

Term Percent of Respondents
Not Important Somewhat Important Very Important
Maximum loan size is too low 94.1 5.9 0.0
Origination and servicing fees too low 82.4 11.8 5.9
Lender's retention share too high 70.6 11.8 17.6
Loss-sharing was too uncertain 29.4 17.6 52.9
Certifications and covenants too restrictive 58.8 23.5 17.6

Exhibit 3: Reasons Why Banks Did Not Register for the MSLP

Figure 1: Reasons Why Banks Did Not Register for MSLP

Reason Percent of Respondents
Not Important Somewhat Important Very Important
Met borrower needs without MSLP 5.9 29.4 64.7
PPP was deemed sufficient to meet borrower needs 27.8 55.6 16.7
MSLP registration requirement was too burdensome 47.1 35.3 17.6
Key terms not attractive to the borrower 41.2 41.2 17.6
Key terms not attractive to the lender 27.8 50.0 22.2

Figure 2: Key Terms Not Attractive to the Borrower, as Reasons Why Banks Did Not Register for MSLP

Term Percent of Respondents
Not Important Somewhat Important Very Important
Borrower leverage too high 55.6 33.3 11.1
Interest rate too high 66.7 33.3 0.0
Principal amortization too steep 33.3 66.7 0.0
5-year maturity term too short 77.8 22.2 0.0
Minimum loan size too high 55.6 44.4 0.0
Origination and transaction fees too high 44.4 55.6 0.0
Employee retention too restrictive 22.2 55.6 22.2
Certifications and covenants too restrictive 11.1 55.6 33.3

Figure 3: Key Terms Not Attractive to the Lender, Reasons Why Banks Did Not Register for MSLP

Term Percent of Respondents
Not Important Somewhat Important Very Important
Maximum loan size is too low 91.7 8.3 0.0
Origination and servicing fees too low 75.0 25.0 0.0
Lender's retention share too high 69.2 30.8 0.0
Loss-sharing was too uncertain 7.7 69.2 23.1
Certifications and covenants too restrictive 25.0 58.3 16.7

Exhibit 4: Borrower Characteristics

Figure 1: Characteristics of Borrowers Inquiring About the MSLP

Characteristic Percent of Respondents
Not Common Somewhat Common Very Common
New client 42.2 41.0 16.9
Borrower reduction in revenue or employment due to COVID-19 11.0 53.7 35.4
Borrower had alternative source of funds 58.5 37.8 3.7
Borrower had access to non-C&I loans 36.6 52.4 11.0
Borrower qualified for PPP 17.1 36.6 46.3

Figure 2: Characteristics of Approved MSLP Borrowers

Characteristic Percent of Respondents
Not Common Somewhat Common Very Common
New client 66.7 9.5 23.8
Borrower reduction in revenue or employment due to COVID-19 9.5 9.5 81.0
Borrower had alternative sources of funds 76.2 14.3 9.5
Borrower access to non-C&I loans 57.1 28.6 14.3
Borrower qualified for PPP 47.6 38.1 14.3
Borrower intends to cover payroll 19.0 38.1 42.9
Borrower intends new capital expenditures 47.6 47.6 4.8
Borrower intends to rollover maturing loans 55.0 30.0 15.0
Back to Top
Last Update: September 29, 2020