Updated Main Street Lending Program
At Gettry Marcus CPA, P.C. we continue to stay apprised as to the lending programs available to business owners to help finance operations during the COVID-19 pandemic. On June 15, 2020, the Main Street Lending Program was opened up for lender registration, thus, banks can sign up to participate in this lending program with the anticipation of the program providing loans to borrowers in the near future.
The Main Street Lending Program includes the Main Street New Loan Facility (“MSNLF”), the Main Street Priority Loan Facility (“MSPLF”), and the Main Street Expanded Loan Facility (“MSELF”) (collectively “the Programs”). Businesses that qualify include entities organized for profit as a partnership, limited liability company, a corporation, an association, a trust, a cooperative, or a joint venture with no more than 49 percent participation by foreign business entities.
With regard to the above listed Programs, the following are some (but not all) of the criteria that businesses must satisfy to be eligible borrowers: (i) existed prior to March 13, 2020; (ii) 15,000 or less employees or 2019 annual revenue less than or equal to $5 billion; (iii) significant U.S. operations and have the majority of their employees in the U.S.; (iv) qualified as an eligible business based on certain provisions of the Federal Reserve Act and the CARES Act.
The salient provisions of the MSNLF, MSPLF and the MSELF are as follows: