The Federal Reserve announced a Main Street New Loan Facility among several actions aimed at pumping in another $2.3 trillion of financing into U.S. businesses.
Here are the highlights of two lending programs aimed at small businesses:
1. Main Street New Loan Facility (MSNLF)
- Businesses with up to 10,000 employees or $2.5 billion in 2019 annual revenues
- The business must be created or organized in the United States with a majority of its employees based in the United States
- Eligible borrowers that participate in the program may not also participate in the Main Street Expanded Loan Facility lending option (see below)
- The minimum loan size is $1 million. The maximum loan size is the lesser of $25 million or a more complicated calculation using several of the business’s financial indicators
- Loan payments can be deferred for one year
- The loan must be repaid within 4 years
2. Main Street Expanded Loan Facility (MSELF)
The MSELF is essentially the same loan program as the MSNLF except for the maximum amount a business can borrow. Businesses in the MSELF program can borrow up to the lesser of $150 million or a more complicated calculation using several of the business’s financial indicators.
The application process is under development
The Federal Reserve is finalizing details of the program, which will be administered through banks and other lending institutions. Stay in touch with your banker to find out how to apply once the Fed makes the application form available.