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.
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