On April 9, the Federal Reserve announced additional actions that include a new mid-sized lending program coming out of the Economic Stabilization Fund, as provided for in the CARES Act. The Fed created two new lending programs for businesses – the Main Street New Loan Facility and the Main Street Expanded Loan Facility (term sheets linked).
The terms in common for the two programs:
- Eligible borrowers are businesses with up to 10,000 employees or up to $2.5 billion in 2019 annual revenues.
- You CAN participate in the PPP and this program.
- You must make certain attestations, but some of the CARES act mid-size business lending requirements (like allowing union organization) are missing.
- Loans are 4-year maturity, amortization of principal and interest deferred for one year, and adjustable rate of SOFR + 250-400 basis points
Click HERE for further information on these programs.