Comparing the Main Street New Loan Facility (MSNLF), Main Street Expanded Loan Facility (MSELF) and Main Street Priority Loan Facility (MSPLF): Key Differences and Takeaways

SC&H’s Key Takeaways

• There are now three types of facilities available under the Main Street Lending Program (MSLP), the Main Street New Loan Facility (MSNLF), Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).
• Both of the loans under the MSLP are designed for small and medium size businesses, defined as under 15,000 employees (previously 10,000 employees) or under $5 billion (previously $2.5B) in 2019 revenues.
• MSNLF allows for new loans originating on or after April 8, 2020 while the MSELF allows borrowers to expand financing for loans originating prior to April 8, 2020.
• Borrowers who apply for and receive loans under the Paycheck Protection Program (PPP) may also take out MSLP loans.
• However, borrowers are limited to utilizing only one of the following facilities and cannot have received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of the Tile IV of the CARES Act):
  • Main Street New Loan Facility (MSNLF)
  • Main Street Priority Loan Facility (MSPLF)
  • Main Street Expanded Loan Facility (MSELF)
  • Primary Market Corporate Credit Facility (PMCCF)
• The minimum loan amount is $500,000 under both MSNLF and MSPLF (previously $1,000,000), whereas the minimum under the MSELF is $10 million (previously $1,000,000); however, the maximum loan amount varies from $25 million through MSNLF and MSPLF and $200 million through MSELF. Conditions apply for determining the maximum loan amount.
• Payments across the programs are deferred for one year, with payments for the MSNLF being evenly distributed at 33% each year and the MSPLF and MSELF having two years of 15% payments and a balloon payment of 70% in the fourth year.