Alert 06.24.20
Main Street Lending Program: Summary for Small and Medium-Sized Businesses
The Federal Reserve continues to release updated guidance for the Main Street Lending Program.
Article
Article
By Joel M. Simon, Matthew Oresman, Kenneth Suh, Russell DaSilva
06.30.20
Choosing the Right Facility for Your Business
The flowchart presented here provides a simplified decision tree to assist you in making a selection that is right for your business. It highlights certain differences between the facilities (however, not all requirements for each facility are addressed). The flowchart should neither be (i) relied upon as adequate/comprehensive legal advice nor (ii) used as the sole source of information in understanding or applying for a Main Street loan.
Eligible Borrower
An “Eligible Borrower” is a Business that:
Business
A “Business” is an entity that is organized for profit as a partnership; a limited liability company; a corporation; an association; a trust; a cooperative; a joint venture with no more than 49% participation by foreign business entities; or a tribal business concern as defined in 15 U.S.C. § 657a(b)(2)(C), except that “small business concern” in that paragraph should be replaced with “Business” as defined herein.
1. The Federal Reserve has expressly clarified that a borrower will not be ineligible by virtue of it also being the recipient of a loan under the SBA's Paycheck Protection Program (PPP) or Economic Injury and Disaster Loan Program (EIDL).