August 17, 2021
Commercial and industrial loans surged in March and April of last year as businesses of all sizes exercised lines of credit as revenue streams shut down in the wake of the stay at home orders. They piled up enormous sums of cash for fear that the recession might last for an extended period of time and they might need it to keep the doors open. But then the government poured enormous sums of stimulus money into the economy. Consumers each for a $1,200 check from the government to tide them over. Stimulus money was made available to businesses through the Paycheck Protection Program, and The Federal Reserve provided ample credit. In the months since then commercial and industrial loans have been declining as most businesses have weathered the spring storm and never needed the excess cash that they borrowed.