Last week the Federal Reserve released a preliminary term sheet regarding the Main Street Lending Program (the “MSLP”) that was authorized by the CARES Act. Under the MSLP, up to $600 billion will be made available to provide relief to mid-size businesses who need access to cash because of the coronavirus pandemic. There are two facilities under the MSLP: the Main Street New Lending Facility (“MSNLF”) is intended to facilitate new loans to businesses while the Main Street Existing Lending Facility (“MSELF”) is intended to extend existing loans. The release of this term sheet has been highly anticipated, as the CARES Act did not set forth the specific terms of this lending program.
This program is not yet operating, and potential borrowers should anticipate changes to these terms as the program is rolled out. The Federal Reserve is soliciting comments through April 16th and additional details, including how the application process will be handled, are anticipated to be released after the comment period has closed.
Download our summary of the term sheet that was released by the Federal Reserve on April 9th