Fed Issues Revisions to Main Street Lending Program: Lower Minimum Loans and Longer Repayment Terms
June 11, 2020
Updated 6/16/2020 at 1:50pm ET
The following information reflects the most current facility information as of June 8, 2020.
The MSLP term sheets continue to be updated as feedback is received by the Federal Reserve. At this point, the release of the MSLP facilities appears to be imminent, with the Federal Reserve now working to establish the infrastructure to deliver the loans. The most significant changes are focused around the minimum and maximum amount of the loans, and the payment period including additional details to the timing of payments.
Conditions still apply for determining maximum loan amount and are addressed in the table below. Finally, the payment terms for all of the facilities have been updated to include payments being deferred for two years, with the interest payments being deferred for one year, and then payments of 15% at the end of the third and fourth year and a balloon payment of 70% at maturity at the end of the fifth year.
The Federal Reserve issued updated term sheets for three lending facilities, Main Street New Loan Facility (MSNLF), Main Street Priority Loan Facility (MSPLF) and the Main Street Expanded Loan Facility (MSELF) under the CARES Act, on June 8, 2020. All three facilities are intended to facilitate lending to small and medium-sized businesses with less than 15,000 employees or $5 billion in 2019 revenues. The following table provides a comparison between the three facilities based on the latest term sheets published by the Federal Reserve on June 8, 2020.