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

1. Main Street New Loan Facility
   • New loans range between $250,000 and $35 million, but restrictions apply based on 4x EBITDA
2. Main Street Priority Loan Facility
   • New Loans range between $250,000 and $50 million, with restrictions based on 6x EBITDA
3. 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