NEW LOAN PROGRAM COMING - MAIN STREET NEW LOAN FACILITY (MSNLF)
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This program is now live and making loans. You can find more information, including lists of potential lenders by state here: https://www.bostonfed.org/supervision-and-regulation/supervision/special-facilities/main-street-lending-program/for-profit-borrower-information.aspx.
So far our lender contacts have suggested the demand is robust for this, but not overwhelming. Lenders seem to be setting higher loan amount thresholds than the program permits to ensure it is worth the effort for them.
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The website for this program is here: https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm
So far no eligible lenders have been identified. I've inquired with a few banks about whether they'd be participating and received eyerolls was able to see over the phone - I took that as a strong No. But, I got that initially from some PPP participating lenders as well, so who knows where this will go.
There's a helpful writeup from Skadden here: https://www.skadden.com/insights/publications[redacted]updated-guide-to-the-main-street-lending-program
Details released yesterday : https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200409a7.pdf
4y term with 12 mo payment deferral[redacted]% interest. 2% fees. Pretty much anyone in our world should be an eligible borrower. I have been asking bankers who’s participating, but so far not received any affirmative responses yet. Would be great if the group here could post more intel as you receive it.
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