Main Street Leading Program

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April 30, 2020
Federal Reserve Board announces it is expanding the scope and eligibility for the Main Street Lending Program
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430a.htm 

The Main Street Lending Program was established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary. The Treasury will provide $75 billion for the program using funds from the Coronavirus Aid, Relief, and Economic Security Act. Frequently asked questions and answers for lenders and borrowers are also available. A start date for the program will be announced soon.
Loan OptionsNew LoansPriority LoansExpanded Loans
Term4 years4 years4 years
Minimum Loan Size$500,000$500,000$10,000,000
Maximum Loan Size*The lesser of $25M or an amount that, when added to outstanding and undrawn available debt, does not exceed 4.0x adjusted 2019 EBITDAThe lesser of $25M or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDAThe lesser of $200M, 35% of existing outstanding and undrawn available debt, or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA
Risk Retention5%15%5%
Payment (year one deferred for all)Years 2-4: 33.33% each yearYears 2-4: 15%, 15%, 70%Years 2-4: 15%, 15%, 70%
RateLIBOR + 3%LIBOR + 3%LIBOR + 3%
Note: On May 1, the language in the Maximum Loan Size row was corrected to match the term sheets for each loan option.

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