Main Street Loan Program

Benefits Under the Program

1. Loan size is 1m to 25m
2. There are two programs (you can only participate in one of them):
   • The Main Street New Loan Facility (MSNLF) – This is for new loans originated after
     April 8, 2020 – The loan amount is based on a minimum of 1m, and a maximum of the lesser of:
     •  $25M
     •  An amount that when added to the borrower’s existing debt, does not exceed
       four times the borrower’s 2019 EBITDA.
   • The Main Street Expanded Loan Facility (MSELF) – This program will allow
     companies to upsize loans from existing lenders originated before April 8, 2020. The
     the loan amount is based on a minimum of 1m and a maximum based on the lesser of:
     •  $150M
     •  30% of the borrower’s existing outstanding bank debt
     •  An amount that when added to the borrower’s existing debt does not exceed six times the borrower’s 2019 EBITDA.

Summary of Program

1. Access is through participating lenders
2. Eligible borrowers are businesses and nonprofits with up to 10,000 employees or up to 2.5 billion in annual revenues. A minimum size requirement has not been established (i.e. over 500 employees)
3. Four-year term
4. Unsecured loan for the MSNLF and existing collateral for the MSELF loan
5. Borrower to pay 1% origination fee
6. Adjustable-rate based on the secured overnight financing rate plus 250 – 400 basis points
7. No prepayment penalties
8. No forgiveness available
9. Restrictions on dividends. None can be paid until 12 months after the loan is repaid. No
   guidance has been provided as to whether exceptions to the dividend restriction will be
   implemented for tax distributions to owners of pass-through businesses such as S-corporations or LLC/partnerships.
10. Borrowers must follow the compensation, stock repurchase, and dividend restrictions
    that apply to direct loan programs under the CARES Act.
11. Borrowers must attest, in part, that:
    • Proceeds will not be used to repay other loan balances.
    • The borrower will refrain from repaying other debt of equal or lower priority with the exception of mandatory principal payments.
    • The borrower will not seek to cancel or reduce existing lines of credit.
    • The borrower requires financing due to the exigent circumstances presented by COVID-19.
    • The borrower will “make reasonable efforts to maintain its payroll and retain its employees” during the loan term.
    • The recipient must intend to restore not less than 90 percent of its workforce in
      place on February 1, 2020, and all compensation and benefits to its workers not
      later than four months after the end of the public health emergency related to
      COVID-19.
    • Highly-paid officers and executives of companies that receive a large business loan
      are prohibited from increasing the compensation of any employee whose
      compensation exceeds $425,000 or from offering them significant severance or
      termination benefits.
12. Eligibility for other programs – Participation in the Main Street Lending Program does
    not prohibit companies from participating in the SBA’s PPP. Companies cannot,
    however, participate in both of the Main Street Lending Program facilities, and are not
    able to participate in the Federal Reserve’s Primary Market Corporate Credit Facility.

Filing Requirments

1. As of today, there is no application and no timetable of when this loan program will be available. 
2. However, you should contact your lender ASAP to “get in line”.