As part of the CARES Act, the Treasury Department and Federal Reserve have launched the Main Street Lending Program to enable up to $600 billion in new financing for medium-sized businesses. The program is designed for businesses with up to 10,000 employees or $2.5 billion in 2019 revenues, and will include facilities that fund both new term loans and expand on existing term loans.

Further information can be found on the Federal Reserve’s website

The challenge

  • Unprecedented scale and scope: volumes of over 30% of C&I loan stock will need underwriting in 90-120 days
  • Need for ongoing monitoring: to ensure compliance with all MSLP attestations and loan conditions
  • Definition Risk: loans can increase debt up to 4X or 6X EBITDA, which add-backs will be allowed in different industries
  • Unlike PPP, this program will require full credit underwriting within compressed timeframes for unprecedented volume

Our white-labelled solution

OakNorth has designed an online workflow solution specifically for banks participating in the program to help with: borrower document and attestation submission, data ingestion, eligibility checks, credit analysis, and loan monitoring. The solution is easy to deploy, enabling the bank to be live within 72 hours.

OakNorth Platform: White labelled offering for Main Street Lending Program

Borrower Hub

  • Intuitive workflow enable borrowers to upload borrower information and loan requests
  • Inbuilt domain specific templates & financial models
  • Offers data validation features to ensure completeness

Ensures consistent document trail

Credit Bench

  • Enables deep and granular analysis through domain specific models and ML models driven by borrower & external data
  • Helps unlock new markets / sectors and deepen existing ones
  • Improves RM and bank efficiency

Provides transparent analysis with clear criteria

Monitor Bench

  • Proactive monitoring with frequently updated borrower financials and operational metrices
  • Early warning actionable alerts
  • Enables cross sell, up-sell

 

Enables quick scenario analysis to factor COVID-19 impact and tracking of MSLP criteria

✓ Easy to deploy secure dedicated cloud hosted platform for banks to go live within 72 hours and prioritize existing customers

✓  100+ domain models addressing 1600 sub-sectors with 30+ COVID-19 stress scenarios

✓ Bank-specific calibration for checks & documentation

  Full transparency providing consistent document trail across all aspects of the credit analysis process

✓  Enhances bank’s operational capacity and provides professional services support through the process

✓  No dependency on Bank systems for integrations

Here to help:

Neil Kahrim

Director

Telephone: (973) 202 5829

Email: neil.kahrim@oaknorth.com

New York

Hugh Shannon

Director

Telephone: (347) 330 7404

Email: hugh.shannon@oaknorth.com

New York