On April 30, 2020, the Federal Reserve Board (Federal Reserve) issued revised terms and conditions of its Main Street Lending Program (MSLP), which is expected to make approximately $600 billion in loans available for small and midsized businesses. The Federal Reserve’s announcement, including revised term sheets for the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF); a new term sheet for a third loan facility, the Main Street Priority Loan Facility (MSPLF); and an extensive set of frequently asked questions (FAQs) can be found here. Brief summaries of each of the facilities are set forth below; a more comprehensive discussion of the final program, including the FAQs, will be provided in a subsequent alert.
Note that the MSLP is not yet operational; the Federal Reserve is expected to announce the start date in the near future. Pending the program’s official launch, prospective borrowers are encouraged to contact their existing banks to confirm that they are Eligible Borrowers and that the banks will participate as lenders.