ED has stated that they will begin accepting participation agreements from “sponsors” (Lenders like T.H.E.) this week. They are also announcing eligible “Custodians” this week so we will begin looking at proposals for those services.
ED is starting to release details such as our required request submission formats, file layouts, and other documentation requirements. ED has told us they will let us know “shortly” what we should be using for Lender IDs. The biggest issue at T.H.E. since we exhausted all of our over $2 billion line of credit capacity last year, is finding the “Bridge loan” funding needed for the program.
An example of the type of answers we are hearing right now is shown below:
From a prospective Bridge lender:
“In terms of being able to provide financing for new loans for the ED’s program, there are still some open issues for warehouse providers that the Dept has been made aware of and has communicated that they are working on. Once we see where things come out, we will be in a better position to assess whether or not we are in a position to provide financing based on their facility.”