CGA Law News & Blog

COVID-19 Update: Main Street Lending Program

access_time Posted on: April 18th, 2020
COVID-19 Update: Main Street Lending Program

Support for Small and Mid-Sized Businesses

The Federal Reserve has established the Main Street Lending Program to provide an additional $2.3 trillion in loans to support small and mid-size businesses. Loans in this program may be in addition to loans granted through the Paycheck Protection Program (although these loans are not forgivable).

To qualify, a business must have no more than 10,000 employees and a 2019 annual revenue that does not exceed $2.5 billion. The business must also be created and have significant operations in the United States.

A loan through this program will have the following terms:

  • Minimum loan size of $1 million and maximum of $25 million or an amount not to exceed four times the eligible borrower’s 2019 earnings (EBITDA)
  • Unsecured term loan with four-year maturity
  • Deferred amortization of principal and interest for one year
  • Adjustable secured-overnight financing rate (plus 250-400 basis points)
  • No prepayment penalty

To learn more, please visit the CGA COVID Business Resource Page or contact a CGA Business Law attorney.


CGA’s latest blog posts.

You Should Talk to Your Family About Their Estate Plan This Holiday Season

With the holiday season in full swing, it’s likely you’ll see your parents, grandparents, siblings, and other family members in the next few weeks. In addition to food, songs, and other merrymaking, this is also the perfect time to speak with your family about more serious topics, such as their estate plan. How To Bring…

Continue Reading You Should Talk to Your Family About Their Estate Plan This Holiday Season