Main Street Lending Program
As a result of the Coronavirus Aid, Relief & Economic Security (CARES) Act, the Federal Reserve has created the Main Street Lending Program to provide a total of $600 billion in financing for small and medium-sized businesses.
While the program’s start date has yet to be announced, here’s what you need to know to check eligibility and get ready to apply.
Am I ELIGIBLE?
In order to be eligible for a Main Street Lending Program loan, a business must:
- Have been established before March 13, 2020
- Not be an ineligible business according to Small Business Administration (SBA)regulations
- Have no more than 15,000 employees or 2019 annual revenues of no more than $5 billion
- The SBA’s affiliation rules apply in determining the employee and revenue count
- In counting employees, the Main Street Lending Program advises businesses to refer to SBA regulations by counting all full-time, part-time, seasonal, or otherwise employed persons, excluding volunteers and independent contractors
- Have been created or organized in the U.S. with significant operations in and a majority of its employees based in the U.S.
- Not also participate in one of the other Main Street loan facilities, as well as the Primary Market Corporate Credit Facility
- Note: Businesses that received support through the SBA PaycheckProtection Program (PPP) are eligible to receive a Main Street loan
- Not have received specific support pursuant to the CARES Act (Subtitle A ofTitle IV for air carriers, air cargo, and businesses critical to national security)
All of the above criteria must be met in order to be eligible.