On June 8, 2020, the Federal Reserve Board announced the expanded Main Street Lending Program and its pending launch this week. The program offers favorable lending terms for small to mid-sized businesses to assist in financial hardships due to COVID-19 and the shutdown of much of the economy over the past few months. This program aims to address the capital needs of companies too large for PPP; however, companies that received PPP are eligible for the program.
Unlike PPP or the EIDL grant, funds received under the Main Street Lending Program are not forgiven and are subject to repayment. There are three loan options that companies can choose from and lending is through U.S. federally-insured depository institutions, such as large banks, as well as any U.S. bank or affiliate of a foreign bank. We suggest starting with your current banking relationship to inquire if they can service the loan.
The loan terms and options are summarized in the Federal Reserve press release. As you consider all the funding options out there, be sure to speak with your advisor. If you do not have an advisor and need assistance with your tax planning and relief options, Anglin’s Tax Advisory Services team can help clarify what the best options are for you.
Stay up-to-date on business and tax impacts of this pandemic through our Coronavirus Resource page where we have compiled updates and resources.