June 29, 2020 by Twinkle Vakharia Article COVID-19
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We have been following the news and updates on the pandemic very closely and love to bring our perspective to the Chiropractic community, however, this content is for informational purposes only. If you would like specific guidance on your practice, your financial advisors or banking reps can help you.

What is the Main Street Lending Program?

Main Street Lending Program allows the Federal Reserve Bank to purchase up to $600 billion in loans to small- and mid-sized businesses. Loans are issued through regular banks who will then sell 85-95% of the loan back to a special purpose vehicle created by the Federal Reserve.

Who is eligible for this program?

All US-based businesses who:

  • Were in sound financial condition before the onset of the COVID-19 pandemic
  • Have less than 15,000 employees
  • Less than $5 billion in annual revenue

In what scenarios is the Main Street Program Beneficial?

  • Secure additional funding for your practice if the funds allocated to business expenses from the Paycheck Protection Program was not sufficient to cover non-payroll costs
  • Competitive repayment interest rate: 3% + current LIBOR (the London Inter-Bank Offered Rate is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans)
  • Longer repayment term: you will have 4 years to complete your payments on this loan

Where can I get more information on the Main Street Lending Program?

There are changes to government assistance programs daily, visit the Federal Reserve website to get the most up-to-date information

 

 

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