By Robert T. Smith, Madeline O. McElhanon, Jason N. Bramlett and Jay T. Taylor
On October 30th, the Federal Reserve Board announced two adjustments to the terms of its Main Street Lending Program. These changes are designed to better provide support to smaller for-profit businesses and nonprofit organizations.
The minimum loan size for both the Main Street New Loan Facility and the Priority Loan Facility have been reduced from $250,000 to $100,000. The fees associated with the loans have also been adjusted to adapt to smaller principal amounts. In addition, Paycheck Protection Program loans up to $2 million may now be excluded for the purpose of calculating a Borrower’s maximum loan size. Loan documents reflecting these new terms will be made available to registered Lenders this week.
Since its inception, the Main Street Lending Program has made almost 400 loans totaling $3.7 billion, providing support to businesses from a wide range of industries. We are advising both Lenders and Borrowers interested in participating in the Program.
Please contact one of our attorneys listed above for more information or assistance.
Robert T. Smith heads the Finance and Commercial Transactions Practice Group.His diverse corporate practice focuses on representing companies and financial institutions in general business, transactional, securities and regulatory matters.
Madeline O. McElhanon is an associate in the Finance & Commercial Transactions Practice Group where she advises banking and other corporate clients on transactional, tax, securities and regulatory matters.
Jason N. Bramlett has a comprehensive practice focusing on the representation of financial institutions and commercial parties in connection with a broad spectrum of issues, including: Structuring, negotiation, and drafting of real estate and asset-based credit facilities for both lenders and borrowers; providing advice, counsel, and representation regarding troubled debt restructurings, bankruptcy, foreclosure and workouts; representing parties in connection with commercial real estate dispositions, leasing and other related matters; and commercial and bankruptcy litigation.
Jay T. Taylor is a partner in the firm’s Finance and Commercial Transactions Practice Group. Jay’s practice is focused heavily on commercial financing transactions. Jay has substantial experience structuring and closing New Markets Tax Credit (NMTC) transactions, renewable energy tax credit transactions, low-income housing tax credit transactions and conventional commercial real estate and commercial/industrial lending transactions.
Disclaimer: The information included here is provided for general informational purposes only and should not be a substitute for legal advice nor is it intended to be a substitute for legal counsel. For more information or if you have further questions, please contact one of our Attorneys.