The Federal Reserve released guidelines for its soon-to-open Main Street Lending Program that will offer four-year loans starting at $500,000 for small- and medium-sized businesses hit by the coronavirus pandemic. To qualify, a business must have had fewer than 15,000 employees or less than $5 billion in revenue in 2019. Lending institutions are administering the program, and a high percentage of each of the loans will be guaranteed by the Fed. Principal and interest payments will be deferred for one year.
Once the Federal Reserve opens the Main Street Lending Program, qualified businesses should apply quickly. To prepare, the Greater Atlantic City Chamber encourages members to review the information and reach out to lenders now.
The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions can be found by clicking here.
For the Fed’s press release, click here.
For frequently asked questions, click here.