
For additional funding, take a stroll down main street
If your business didn’t qualify for a PPP loan, you may want to check out the Federal Reserve’s new Main Street Lending Program.
The Main Street Lending Program helps companies that:
- Existed before March 13, 2020
- Are U.S. businesses with substantial U.S. operations
- Have 15,000 or fewer employees OR 2019 revenues of $5 billion or less
- Were in sound financial condition before the COVID-19 pandemic
- Haven’t received support from certain CARES Act programs
Main Street Loans
- Have 5-year terms
- Delay principal payments for 2 years
- Feature adjustable rates of LIBOR + 3%
- Won’t be forgiven (unlike eligible PPP loans)
- Generally can’t be used for stock buybacks or dividends
Loans are offered through 3 channels
- Main Street New Loan Facility
- New loans range between $250,000 and $35 million, but restrictions apply based on 4x EBITDA
- Main Street Priority Loan Facility
- New Loans range between $250,000 and $50 million, with restrictions based on 6x EBITDA
- Main Street Expanded Loan Facility
- Existing loans or credit lines can be increased by loans of between $10 million and $300 million for eligible borrowers, with restrictions based on 6x EBITDA
Other rules apply. Click here for more information, and contact us about finding a Main Street lender or to discuss other potential financing options.
©2020
Read: Here’s what happens to your PPP loan if your small business fails