Earlier this week, U.S. Treasury Secretary Steven Mnuchin announced the Main Street Lending Program is now fully operational. The Program was established to provide financial support to small and medium-sized businesses affected by the COVID-19 pandemic. Interested borrowers can find additional information about the Program, including a list of participating eligible lenders by state, here.
Eligible borrowers have access to a variety of loan options depending on whether they operate a for-profit or not-for-profit entity. Terms for the Program loan options can be found within the tables below.
General Terms
| Forgiveness | The loan is not forgivable |
|---|---|
| Payment Deferral | Payments on principal deferred for two years and interest deferred for one year |
| Prepayment | Permitted without penalty |
| Tax Treatment | Treated as indebtedness for tax purposes |
| Loan Term | Five years |
| Interest Rate | LIBOR (1 or 3 month) + 3% |
| Principal Repayment | Year 3: 15%, Year 4: 15%, Year 5: 70% |
| Lender Risk Retention | 5% |
Loan Option Specific Terms
For-profit eligible entities
| Main Street Lending Loan Options | |||
|---|---|---|---|
| New Loan | Priority Loan | Expanded Loan | |
| Loan Amount | |||
| Minimum | $250,000 | $250,000 | $10,000,000 |
| Maximum | Lesser of $35,000,000 or
4x 2019 adjusted EBITDA |
Lesser of $50,000,000 or
6x 2019 adjusted EBITDA |
Lesser of $300,000,000 or, when added to the outstanding or undrawn available debt, does not exceed
6x 2019 adjusted EBITDA |
| Eligible Loans | Secured or unsecured term loan originated after April 24, 2020 | Secured or unsecured term loan originated after April 24, 2020 | Secured or unsecured term loan or revolving credit facility originated on or before April 24, 2020, with a remaining maturity of at least 18 months |
| Origination Fee | 1.00% of the principal amount | 1.00% of the principal amount | 0.75% of the principal amount related to incremental loan |
| Transaction Fee* | 1.00% of the principal amount | 1.00% of the principal amount | 0.75% of the principal amount related to incremental loan |
Non-for-profit (NFP) eligible entities
| Main Street Lending NFP Loan Options | ||
|---|---|---|
| NFP New Loan | NFP Expanded Loan | |
| Loan Amount | ||
| Minimum | $250,000 | $10,000,000 |
| Maximum | Lesser of $35,000,000 or
average 2019 quarterly revenue |
Lesser of $300,000,000 or
average 2019 quarterly revenue |
| Eligible Loans | Secured or unsecured term loan originated after June 15, 2020 | Secured or unsecured term loan or revolving credit facility originated on or before June 15, 2020, with a remaining maturity of at least 18 months |
| Origination Fee | 1.00% of the principal amount | 0.75% of the principal amount related to incremental loan |
| Transaction Fee* | 1.00% of the principal amount | 0.75% of the principal amount related to incremental loan |
*At the discretion of the lender, these fees may be paid by the borrower.
For more information on how the coronavirus is impacting businesses across multiple industries, visit our COVID-19 resource page:
