Kane Russell Coleman Logan PC (“KRCL”) announces the formation of its KRCL Main Street Lending Task Force. The KRCL Main Street Lending Task Force consists of seven lawyers and one legal assistant. They are:
Kathleen Thompson Cynthia McMillan*
The KRCL Main Street Lending Task Force will assist Eligible Lenders and Eligible Borrowers in connection with the Main Street Lending Program.
The Main Street Lending Program consists of the following three types of loan facilities: (1) the Main Street New Loan Facility (MSNLF); (2) the Main Street Priority Loan Facility (MSPLF); and (3) the Main Street Expanded Loan Facility (MSELF). The term sheets for each of the MSNLF, MSPLF, and MSELF promulgated by the Federal Reserve may be accessed through the links provided below.
To become an “Eligible Lender,” a lender must file a registration application, and that application must be approved by the Federal Reserve.
In order to be an “Eligible Borrower” qualified to receive any of the three Main Street Loans, the Borrower must meet certain eligibility requirements. They are generally: (1) the business must have 15,000 or fewer employees; or (2) the business had 2019 revenues of $5 billion or less. Main Street Loans range from $250,000 to $300 million.
The Main Street Lending Program is not yet operational. On June 15, 2020, the Federal Reserve announced that the Main Street Lending Program was open for lender registration.
The Federal Reserve issued Frequently Asked Questions (FAQs) on April 30, 2020. The Federal Reserve revised the FAQs on May 27, 2020, June 8, 2020, June 20, 2020, and June 26, 2020. Only the June 26, 2020 FAQs are effective in force. The prior FAQs may be ignored.
Once Eligible Borrowers can apply for Main Street Loans, KRCL’s Main Street Lending Task Force will assist Eligible Lenders and Eligible Borrowers with navigating the loan origination, structuring and documentation processes. It is highly likely that the FAQs and other rules related to the Main Street Loans will continue to be revised. KRCL’s Main Street Lending Task Force will be monitoring these changes as they are announced.
Set for below is an informational chart provided by the Federal Reserve setting forth the terms of the three Main Street Loan programs and links to the term sheets for each loan published by the Federal Reserve.
Links to Main Street Lending Loan Term Sheets Promulgated by the Federal Reserve:
*Cynthia McMillan, legal assistant