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April 14, 2020

Main Street Lending Program for Small and Mid-Sized Businesses Now Available

Businesses with up to 10,000 employees or less than $2.5 billion in 2019 annual revenues may be eligible for new or expanded financing under the Federal Reserve’s Main Street Lending Program.

Small to mid-sized businesses that were in good financial standing before the crisis may be eligible for 4-year loans; principal and interest payments will be deferred for one year.

Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. Banks will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans.

Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act.

Firms that have taken advantage of the Paycheck Protection Program, the forgivable loan program for small businesses under 500 employees, may also take out Main Street loans.

To determine if your business is eligible for the Main Street Lending Program, and to inquire about how to access this loan program, please contact your banking provider.