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
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.
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 Options | New Loans | Priority Loans | Expanded Loans |
Term | 4 years | 4 years | 4 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 EBITDA | The lesser of $25M or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA | The 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 Retention | 5% | 15% | 5% |
Payment (year one deferred for all) | Years 2-4: 33.33% each year | Years 2-4: 15%, 15%, 70% | Years 2-4: 15%, 15%, 70% |
Rate | LIBOR + 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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