The Main Street Lending Program’s New Expansion Updates

by | Jun 15, 2020 | Covid-19 Updates

The Federal Reserve’s $600 billion Main Street Lending Program assists SMB’s with less than 15,000 employees or annual revenues of $5 billion or less in 2019. The MSLP supports small to medium-sized businesses the working capital to stay afloat during and after the economic shutdown due to the coronavirus pandemic.

MSLP Expansion Announced

The Federal Reserve announced new modifications to the Main Street Lending Program on June 8th, 2020. The new minimum loan size for the New Loan Facility and the Priority Loan Facility has decreased to $250k from the original amount of $500k.

Changes to the MSLP include:

  • Extended loan terms on all programs from 4 to 5 years;
  • Principal payment deferrals are now two years instead of 1 year;
  • Years 3-5 are 15%, 15%, 70% respectively
  • Maximum loan amounts are determined on a case-by-case basis, with a ceiling of $300M up from $200M;
  • The Federal Reserve’s participation is at 95%, while lenders are assuming only 5% of the loan amounts.

What is the Main Street Lending Program?

$600 billion Main Street Lending Program designed by The Federal Reserve provides support to small and medium-sized businesses with less than 15,000 employees or 2019 annual revenues of $5B or less during the current financial crunch caused by the Coronavirus/COVID-19 Pandemic.

Small & Medium-sized businesses are essential to the U.S. economy and are creators for a large number of the U.S. workforce, the additional credit was made available to help companies that were in stable financial condition prior to the COVID-19 pandemic, the new program is designed to maintain operations and payroll until the country can return to normal.

How We Can Help You:

Can an MSLP loan help your business during these uncertain times? We can help! Contact us today, call us at (305) 444-8288 or send us an email info@zommagroup.com.

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