Main Street Lending Program (MSLP) ***ends 9/30/20***
Main Street is designed to provide support to small and medium-sized businesses and their employees across the United States during the current period of financial strain by supporting the provision of credit to such businesses. The availability of additional credit is intended to help companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize.
Loan Features and Benefits
- Main Street loans are full-recourse loans and are not forgivable
- The program runs until September 30, 2020
- MSLP guidelines now allow borrowers to refinance up to $50 million in existing debt
- MSLP supports small and medium-sized businesses that were unable to access the PPP or that require additional financial support after receiving a PPP loan
- Payments of principal and interest are deferred for up to 2 years. Unpaid interest will be capitalized
- The minimum loan is $250K and the max is $35MM, capped at a threshold of 4x EBITDA. Exceptions are available for certain borrowers, allowing access up to $300MM, capped at a threshold of 6x EBITDA
- Businesses with up to 15,000 employees or fewer
- Annual revenue of $5 billion or less in 2019
- Business must be 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
If you want to learn more about the Main Street Lending Program, contact the team at Select Capital Solutions today.