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How Can the Main Street Lending Program Help Your Business?

Published November 4th, 2020 by Cornerstone Capital Advisors

If your business is struggling during the ongoing pandemic, you still have options for economic relief. You don't have to be worried about how you are going to keep your business open and retain employees.

Continue reading to learn everything you need to know about the Main Street Lending Program and how it can help your business in these uncertain times.

What Is the Main Street Lending Program?

The Federal Reserve created the Main Street Lending Program as a government loan for small and medium sized businesses in response to the uncertainty of the Covid-19 pandemic.

The reserve put aside $600 billion of business aid in the Coronavirus Aid, Relief and Economic Security (CARES) Act to assist the businesses that were financially sound before the impact of the pandemic negatively affected their finances.

The program received $75 billion provided by the U.S. Treasury thanks to the CARES Act.

There are five facilities through which the program operates. The amount of your loan will be determined by what loan type you need and whether your business is nonprofit or for profit.

The Main Street New Loan Facility (MSNLF)

The Main Street New Loan can be taken out for a minimum of $250,000 to a max of less than $35 million. It can also be for an amount of no more than four times the borrower's 2019 adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

The Main Street Priority Loan Facility (MSPLF)

The Main Street Priority Loan is also for a minimum of $250,000, but it has a higher maximum of $50 million. The loan amount cannot be for more than six times the company's adjusted EBITDA.

The Main Street Expanded Loan Facility (MSPLF)

The minimum loan amount for the Main Street Expanded Loan was for $10 million which is different than the prior loan types. The maximum is for up to $300 million. The loan amount cannot exceed more than 6 times the borrower's 2019 EBITDA.

The Nonprofit Organization New Loan Facility (NONLF)

The minimum amount for the Nonprofit Organization New Loan is a minimum of $250,000 and a maximum of $35 million. The loan cannot exceed the borrower's average quarterly revenue for 2019.

The Nonprofit Organization Expanded Loan Facility (NOELF)

The expanded loan is for a minimum of $10 million. The maximum is for $300 million or the amount of their 2019 quarterly revenue.

How Can It Help Your Business?

To be eligible for the lending program, there are a few requirements, including:

  • must be in business since at least January 1, 2015
  • must have at least 10 employees
  • must have less than 15,000 workers and $5 billion in revenue for 2019
  • didn't receive additional support from the CARES Act

Loans starting at $1 million are available to give some debt relief to businesses that are struggling due to the pandemic. The loan offers employers a five-year repayment plan. You can get payments deferred for the first two years. The first year is interest-free. 

The loans can be used for retaining employees and keeping the company running during uncertain times, like that of the Covid-19 pandemic.

Don't Panic If Your Business Is Struggling

You don't have to worry about your business going under during this uncertain time. The Federal Reserve created the Main Street Lending Program to keep your 

Contact Cornerstone Capital Advisors today for more information about the program.


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