In today’s top news, Amazon will put new customers for its grocery delivery service on a waitlist and JPMorgan Chase is raising its standards for loan qualification to stave off economic downturn. Plus, Karen Webster details Main Street small business continued worries.
New customers for Amazon grocery delivery will be directed to a waitlist. In addition, some physical locations of Whole Foods stores have curtailed hours to allow for restocking and cleaning, and others are now focusing exclusively on fulfilling online grocery orders as the coronavirus pandemic accelerates demand beyond capacity.
JPMorgan Chase is attempting to stave off the oncoming economic downturn by temporarily raising the standards on who qualifies for a loan. The new standards will make it so customers applying for a new mortgage will need a credit score of 700 or higher and will have to make a down payment of 20 percent of the home’s values. The new standards only apply to new applicants, not those who currently have a mortgage through the bank.
The $350B Small Business Administration (SBA) Paycheck Protection Program (PPP) COVID-19 relief fund is intended as a lifeline for small and medium-sized businesses (SMBs) whose businesses have been hit hard by coronavirus. Yet, Karen Webster says PYMNTS research on 700-plus Main Street SMBs shows that even with that lifeline, the cash gap between what these businesses need to stay afloat and the time they think it will take for business to return is still too large for many to cross. Just as many Main Street SMBs think they will fail or that their business is at risk after PPP funds became available as did the week before the plan became known — and so may not even get in line. Here’s what new data shows these Main Street SMBs need from the government — and why.
The coronavirus pandemic looks set to ravage earnings season, which kicks off this week. Banks will be especially hard hit, pressured by low interest rates, and now, of course, skyrocketing unemployment and small business shutterings. The numbers will tell a sober tale, but there may be a bright spot or two among the data, particularly tied to digital banking activity, which should get a tailwind as we all shelter place.
PayPal has become one of the first non-bank institutions allowed to distribute SBA Paycheck Protection Program loans. This development follows interest from a number of non-traditional institutions and applications, including others like Square, to help distribute the loans during the pandemic’s widespread financial uncertainty and troubles.
JetBlue joined with Goldman Sachs to offer an installment loan product, which was in the works before the coronavirus pandemic. The financial institution launched MarcusPay this week, which allows users to spread out big-ticket purchases across monthly payments.
Amid the coronavirus crisis, airlines have been raising money from just about every asset they hold, and now they are considering selling miles to banks.