Choosing the Right Facility for Your Business
The flowchart presented here provides a simplified decision tree to assist you in making a selection that is right for your business. It highlights certain differences between the facilities (however, not all requirements for each facility are addressed). The flowchart should neither be (i) relied upon as adequate/comprehensive legal advice nor (ii) used as the sole source of information in understanding or applying for a Main Street loan.
Three Facilities
- Main Street New Loan Facility
- Main Street Priority Loan Facility
- Main Street Expanded Loan Facility
Common Features
- 5-year maturity
- No amortization until 3rd anniversary
- No interest payments during Year 1
- LIBOR + 3%
- 95% participation by the Fed’s Main Street SPV in each loan
Flowchart Glossary
Eligible Borrower
An “Eligible Borrower” is a Business that:
- was established prior to March 13, 2020;
- is not an Ineligible Business listed in 13 CFR 120.110(b)-(j), (m)-(s), as modified and clarified by SBA regulations for purposes of the PPP on or before April 24, 2020;
- meets at least one of the following two conditions: (i) has 15,000 employees or fewer, or (ii) had 2019 annual revenues of $5 billion or less;
- is created or organized in the United States or under the laws of the United States with significant operations in and a majority of its employees based in the United States;
- does not also participate in more than one Main Street Loan Facility, or the Primary Market Corporate Credit Facility;
- has not received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act); and
- subject to satisfying the above criteria, can participate in the SBA’s Paycheck Protection Program or Economic Injury Disaster Loan Program.
Business
A “Business” is an entity that is organized for profit as a partnership; a limited liability company; a corporation; an association; a trust; a cooperative; a joint venture with no more than 49% participation by foreign business entities; or a tribal business concern as defined in 15 U.S.C. § 657a(b)(2)(C), except that “small business concern” in that paragraph should be replaced with “Business” as defined herein.
