On June 15, 2020, the SBA announced that the Main Street Lending Program portal is now open. The Main Street Program provides additional funding to small and mid-size businesses, with relaxed regulations, as part of the CARES Act.
The Main Street New Loan Facility (MSNLF) offers eligible borrowers the ability to secure loans ranging from a minimum loan of $250,000 to a maximum loan size of $35 million. The maximum loan request, when added to the borrowers current outstanding debt, along with undrawn available debt can not exceed four times the amount of the business 2019 EBITDA. Any amounts that were obtained through the Paycheck Protection Program (PPP), must be included in the outstanding debt, if the PPP loan has not yet been forgiven. Eligible borrowers must have less than 15,000 employees and under $5 billion in revenue.
The loan will be a 5 year term loan with no principal payments due during the first 2 years of the loan. In years 3 and 4, 15% of the principal amount of the loan must be repaid each year. A balloon payment of 70% of the loan will be due at the end of year 5. The interest rate will be at LIBOR plus 300 basis points.
The loans will be available until September 30, 2020.
At BKC, our experienced professionals are available to help businesses navigate through the available options and compliance reporting. For more information, please contact us at (908) 782-7900 or firstname.lastname@example.org.
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