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.

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