Shearman & Sterling and OakNorth Host Webinar on Main Street Lending Program
Partner Michael Chernick participated in a webinar on Monday, June 8 with leaders at OakNorth, Sean Hunter (CIO) and Neil Kahrim (Director), to discuss the business and legal challenges banks face with Main Street lending and ways they can use it as a tool to drive the best outcomes for their borrowers and shareholders.
Some challenges include:
- Borrowers that have access to capital can attain better terms elsewhere, leaving the most distressed borrowers seeking access to MSLP, which is not attractive for banks, especially at L+300
- Banks need to quickly and regularly re-underwrite and stress their books based on sub-sector specific scenarios, to determine which borrowers will need help and proactively offer financing, Main Street or otherwise
- Main Street also carries other considerations around having a consistent underwriting process, ongoing compliance and regulatory scrutiny that promises to be just as onerous as PPP, if not more
OakNorth is a U.K. bank for small and medium sized companies that provides business and property loans
Listen to the replay of “Main Street Lending Program: A Lemon or Lemonade?” | Access Password: 0Y*3%Kv#