Extraordinary Measures the Federal Reserve Can Enact to Help Main Street

The Federal Reserve has extraordinary powers to support the economy in times of stress, such as those we find ourselves in now. It’s already taken action to reduce interest rates and to push liquidity into the financial markets with limited economic impact so far. Consequently, in order to really help the US economy, we would argue that now is the time for the Federal Reserve to use the full power of its authority to directly support commerce in the United States.

Many pundits and experts have pointed out the differences between the last U.S. financial crisis and now. The former was a crisis within the banking industry and traditional Federal Reserve actions could therefore help to resolve the crisis. What we’re facing today is more of a crisis of Main Street as opposed to Wall Street. Near-zero interest rates and injections of capital into the banking system – drastic (albeit conventional) measures in any other financial crisis – are unlikely to provide sufficient, immediate support for the Main Street economy.

Given the unprecedented circumstances of the COVID-19 pandemic, even more extraordinary action needs to be taken. The impact of reducing the interest rates on credit cards, mortgages and car loans will not have enough of an immediate or direct impact on economic activity to be meaningful in the short run. Nor will quantitative easing. This is where the Federal Reserve injects capital into the financial system through the purchase of financial instruments such as government securities and mortgage backed securities in order to provide extra liquidity to banks, which can then lend more. Similar to interest rate cuts, any beneficial economic impact is likely to be delayed or insufficient to keep commerce (and the economy) moving.

Certain Extraordinary Measures from the Fed Could Deliver Swift Aid to Main Street

The good news is the Federal Reserve is already undertaking some extraordinary measures – namely actions to support large commercial enterprises (as well as banks). This includes the Federal Reserve purchasing short-term corporate debt obligations (known as “commercial paper”) from commercial/industrial enterprises to help them maintain appropriate financial liquidity. The Federal Reserve has also said it will support money market mutual funds in an effort to keep these markets active.

But, while these actions will be helpful for large enterprises, they do little for the small and mid-size businesses that are the backbone of the U.S. economy. These companies are not public and many are too small to have access to bond or commercial paper markets. While they may ultimately benefit from the support provided to larger enterprises through the effect of trickle-down economics, relief may not come quickly enough.

So, what other extraordinary, fast-acting measures should be considered? One is to have Federal Reserve banks step in and purchase drafts – which is the payment instrument issued by a payer to a payee (similar to an IOU). Section 13(2) of the Federal Reserve Act grants Federal Reserve Banks the authority to discount notes, drafts and bills of exchange arising out of actual commercial transactions. This includes drafts issued for commercial purposes. The Board of Governors of the Federal Reserve System have the right to determine or define the character of the paper thus eligible for discount. These powers grant an extraordinary authority to the Federal Reserve and provides Federal Reserve banks with the ability to inject financial lubrication directly into the inner workings of commerce within the U.S. economy.

One byproduct of this measure would be increasing the effectiveness and security of supply chain finance. Supply chain finance programs, like those run by PrimeRevenue, create drafts as defined in the Federal Reserve Act to facilitate supply chain finance transactions (note: not every supply chain finance program creates drafts – some are based on the purchase of accounts receivables). Using PrimeRevenue’s supply chain finance platform, large creditworthy enterprises are able to create electronic time drafts for the payment of their suppliers, which can then be discounted for early payment to those suppliers based on the obligor’s high credit rating. The Federal Reserve banks could therefore step in and purchase these drafts from our participating banks in a secondary market in order to provide additional liquidity to these corporate supply chains, in turn easing commerce and keeping the economy moving. In times of unprecedented economic stress, this may be the only source of financing and liquidity available to many U.S. small and mid-size businesses that supply corporate giants.

It also gets in front of the issue of finite bank credit capacity and potentially higher financing costs as market turbulence unfolds. While we are not seeing capacity issues among PrimeRevenue’s participating banks that currently purchase drafts, Federal Reserve involvement in the market will assure interest rates remain low and the market remains liquid. In addition, as authorized in the Federal Reserve Act, Federal Reserve banks could choose to purchase drafts directly off of the PrimeRevenue platform, thus providing potentially billions of dollars in stimulus directly into the Main Street economy and opening up supply chain finance to areas of Main Street not traditionally served by commercial lenders and banks. Furthermore, this would give all funders participating in supply chain finance access to additional channels of liquidity.

Will the Federal Reserve Step Up to the Plate?

We have every reason to believe they will – including the fact that variations of the measures above have been already been enacted in other parts of the world. Governments in various Asian countries are stepping in to facilitate trade finance in order to support their local economies. Furthermore, the Asian Development Bank is setting up lines of credit specifically to support supply chain finance programs. In these volatile times, we suggest the Federal Reserve has an obligation to do likewise. Main Street needs help now – yesterday, really – and that will require bold action from all of us.

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Stephanie Wargo

VP, Global Head of Marketing

Stephanie joined PrimeRevenue in 2015 and oversees the company’s global marketing team and strategy. With a data-driven approach, Stephanie focuses on demand generation and thought leadership to drive brand awareness, strengthen client/partner relationships, and generate new sales opportunities. Stephanie has guided PrimeRevenue through new technology releases and an evolving FinTech landscape. In addition to leading PrimeRevenue’s internal and external communications, she implemented innovative demand generation and marketing strategies to enhance the company’s overall sales pipeline.

Stephanie has extensive experience in marketing and customer success. She previously served as Vice President of Marketing and Communications at BitPay and Vice President of Client Relations and Marketing at FirstView Financial. Stephanie earned a B.A. degree in Political Science from Agnes Scott College in Decatur, Georgia.

Brian Medley

VP, Global Head of Sales

Brian joined PrimeRevenue in early 2012, after more than 20 years of sales leadership, executive-level consultant and business growth experience. As VP, Global Head of Sales, Brian leads a growing team of fintech sales professionals with a focus on developing strong customer relationships, improving sales predictability and helping PrimeRevenue enter the lucrative mid-market.

Prior to PrimeRevenue, Brian honed his enterprise software sales leadership skills at Clarus Corporation. He also served as an operations and IT management consultant for Kurt Salmon Associates. In addition to his sales and consulting background, Brian has deep experience in the financial industry having founded a successful residential mortgage broker and lending business. He is a graduate of the Georgia Institute of Technology having earned a B.S. in Industrial Engineering and Economics and M.B.A. in Global Business.

Jason Green

SVP, Global Customer Success

Jason joined PrimeRevenue in 2021 following more than two decades in the fintech/financial services industry. He brings a strong background is sales leadership due to his impressive relationship building capability as well as a successful track record in creating structure and process improvements. In his role, Jason uses his keen attention to detail to strengthen the customer experience and enhance the company’s solutions to deliver more value to clients.

Prior to joining the company, Jason held several senior level and executive roles with a focus on building and scaling sales and support organizations at both large and small companies. Jason graduated from Murray State University with a B.S in Marketing.

Matt Ford

SVP, Global Product Innovation

Matt joined PrimeRevenue in early 2015 and is responsible for overseeing all commercial, strategic and operational aspects of PrimeRevenue’s supply chain finance offerings throughout EMEA, based in Prague. He has been instrumental in gaining global alignment and developing supplier enablement processes for the region.

Matt joined PrimeRevenue following a 15-year career at Morgan Stanley, where he worked in fixed income operations covering debt syndication through bonds, EMTNS, corporate loans and other debt securitization. Notably, he set up non-core location operations in Europe (Budapest) and all lending operations in Baltimore from scratch.

Matt, who was born and raised in South East England, earned a B.S. in Sports Science at University of Teesside where he mastered the art of TEAM development and accountability as a youth international rugby player.

Dominic Capolongo

EVP, Global Head of Funding

Dominic joined PrimeRevenue in 2016, and is responsible for leading our bank and capital markets funding strategies and execution. He focuses on building global, scalable and highly efficient funding structures that maximize options for supporting PrimeRevenue’s programs. Dominic began his career as an attorney and was a partner with Kaye Scholer before joining DLJ as a senior banker. Dominic brings tremendous strategic and capital markets experience in all areas of finance having held senior positions at, among others, Credit Suisse and RBC Capital Markets in addition to DLJ. Dominic earned a JD from Fordham University School of Law and a BA from SUNY Binghamton.

Gavin Cicchinelli

Chief Operating Officer

Gavin joined PrimeRevenue as Chief Operating Officer in 2021. With more than two decades of leadership and executive experience along with a deep understanding of the payments space, Gavin provides a unique focus on improving and strengthening operational strategies and implementing GTM growth execution. He is responsible for leading transformation across corporate and operational strategies as well as building a repeatable and scalable commercial growth strategy that aligns with PrimeRevenue’s core business while delivering key adjacent growth opportunities.

Prior to joining PrimeRevenue, Gavin served as President and Chief Revenue Officer of Integrated Solutions at TSYS, a global payment processing services company acquired by Global Payments (NYSE:GPN). There, he also served as Head of Product and divisional COO. Throughout his career, Gavin has held multiple leadership positions including VP of Sales, SVP of Business Development, and President of Financial Institutions. Gavin graduated from the University of Northern Colorado, Greeley.

David Quillian

Chief Legal Officer

David joined PrimeRevenue as General Counsel in 2007. He and his team have been instrumental in successfully creating the unique legal structures that support PrimeRevenue’s multi-funder model and global funding capabilities. David is also the lead named inventor on PrimeRevenue’s two patents for Electronic Time Drafts, which allow PrimeRevenue to manage supply chain finance programs using electronic negotiable instruments as opposed to accounts receivable. Prior to PrimeRevenue, David was General Counsel at Harbor Payments, which was acquired by American Express (AXP) in 2006, and Magnet Communications, which was acquired by Digital Insight (DGIN) in 2003. He holds degrees in Economics and History from Duke University, and Juris Doctor and M.B.A. degrees from the University of Georgia.

Nathan Feather


Nathan has successfully ushered PrimeRevenue from our very early days as a visionary startup, through the financial crisis to today’s position as a thriving mid-sized leader in the cloud-enabled supply chain finance marketplace since joining PrimeRevenue in January 2006. He was instrumental in recapitalizing the company with an $80M investment led by BBH Capital Partners in 2015. Prior to PrimeRevenue, he held various financial management roles with Ariba, Freemarkets and PriceWaterhouseCoopers. Nathan holds a BS in Accounting from Pennsylvania State University.

PJ Bain


PJ has an impressive and accomplished track record as an enterprise software entrepreneur and executive. PJ has built a solid record of success with PrimeRevenue since being appointed Chief Executive Officer in July of 2009. The company has received numerous awards for growth, customer service, innovation, along with being recognized as a top employer.

PJ is a life-long software and technology entrepreneur having been involved in numerous firms in the roles of founder, executive, advisor and investor. Immediately prior to PrimeRevenue, PJ was the VP and General Manager of Exact Holding N.V. (NYSE/AMS: EXACT), a leading global provider of business software solutions. He was previously Founder and CEO of Inspired Solutions, an Atlanta-based, B2B software and services firm that grew to be the largest reseller of Exact Software in North America, later acquired by Exact. PJ holds a Bachelor of Industrial Engineering from Georgia Institute of Technology.