Buchalter Covid-19 Client Alert: Federal Reserve Expands Main Street Lending Program; Reduces Some Minimum Loan Amounts, Raises Maximum Loan Amounts, Extends Loan Term


On June 8, the Federal Reserve announced a number of changes to the Main Street Lending Program (“MSLP”), involving all three facilities, the Main Street New Loan Facility (“MSNLF”), the Main Street Priority Loan Facility (“MSPLF”), and the Main Street Expanded Loan Facility (“MSELF”). The changes are designed to make MSLP loans available to more borrowers and to reduce the lender’s “skin in the game” on higher-leverage loans. The changes are:

  • Lowering the minimum loan amounts for MSNLF and MSPLF to $250,000 from $500,000.
  • Increasing the maximum loan amounts as follows:
    • MSNLF: $35 million, up from $25 million.
    • MSPLF: $50 million, up from $25 million.
    • MSELP: $300 million, up from $200 million.
  • Extending the loan term for all three loan facilities from 4 years to 5 years.
  • Principal deferral increased from 1 year to 2 years for all three facilities. The repayment schedules for MSNLF, MSPLF and MSELF are now 15% in years 3 and 4, and 70% in year 5.
  • Reducing the amount of retention the lender must hold for MSPLF from 15% to 5%, the same level as MSNLF and MSELF (even though MSPLF has a higher maximum leverage ratio of 6 x EBITDA, compared to 4 X EBITDA for the other loan facilities.

The Federal Reserve’s announcement can be found HERE.

Written by:


Buchalter on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.