https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430a.htm
Banks will keep a bigger share of certain loans.
Oil drillers and frackers lobbied for some of these changes.
Maximum on employees for eligible firms raised from 10,000 to 15,000
The Fed is studying whether to help non-profits.
A start date will be announced soon.
Main Street Lending Program Loan Options | New Loans | Priority Loans | Expanded Loans |
Term | 4 years | 4 years | 4 years |
Minimum Loan Size | $500,000 | $500,000 | $10,000,000 |
Maximum Loan Size* | The lesser of $25M or an amount that, when added to outstanding and undrawn available debt, does not exceed 4.0x adjusted 2019 EBITDA | The lesser of $25M or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA | The lesser of $200M, 35% of existing outstanding and undrawn available debt, or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA |
Risk Retention | 5% | 15% | 5% |
Payment (year one deferred for all) | Years 2-4: 33.33% each year | Years 2-4: 15%, 15%, 70% | Years 2-4: 15%, 15%, 70% |
Rate | LIBOR + 3% | LIBOR + 3% | LIBOR + 3% |
Term sheet: Main Street New Loan Facility (PDF)
Term sheet: Main Street Priority Loan Facility (PDF)
Term sheet: Main Street Expanded Loan Facility (PDF)
Main Street Lending Program Frequently Asked Questions (PDF)
Charlie Cooper
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