ComplianceJuly 06, 2020

What you should know about the Main Street Lending Program

The Main Street Lending Program is a program designed to provide access to credit for small to medium-size businesses that need the financing due to the COVID-19 pandemic. The program is administered by the Federal Reserve, which is authorized to purchase up to $600 billion in loans made from eligible lenders to eligible borrowers.

To implement the program the Federal Reserve of Boston established a Special Purpose Vehicle. That SPV contains three separate loan facilities – the Main Street New Loan Facility, the Main Street Priority Loan Facility, and the Main Street Expanded Loan Facility. An eligible business can borrow money from only one of the facilities. The chart below highlights some of the key features of each kind of loan. The information is based on the most recent term sheets provided by the Federal Reserve, which were released on June 8. For more details see the term sheets, which can be accessed from the Federal Reserve’s website here: https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm

The Main Street Lending Program Loan Facilities Key Features
The Main Street Lending Program Loan Facilities
Key Features

Interested businesses can apply for one of the Main Street Lending Program loans through an eligible lender. Eligible Lenders are expected to conduct an assessment of each potential borrower’s financial condition at the time of the potential borrower’s application. Potential borrowers should expect to provide their lenders with various business documents and financial records to allow the lender to assess both the business’ eligibility and its creditworthiness.

For assistance in obtaining business entity documents such as a certified copy of the formation document and a certificate of existence contact a CT representative.

For more information on the MSLP program see our articles.

New Main Street Lending Program Provides COVID-19 Related Financial Assistance for Businesses

Sandra Feldman
Publications Attorney
Sandra (Sandy) Feldman has been the Publications Attorney for CT Corporation since 1988. Sandy stays on top of the most pressing and pertinent business entity law issues that impact CT customers of all sizes and segments.