Senior Loan Officer Opinion Survey on Bank Lending Practices
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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 |
Last Update:
September 29, 2020