5月27日, 2020, the Federal Reserve Bank of Boston released updated guidance on the Main Street Lending Program (“MSLP”) indicating that the program is close to becoming formally operationalized and open to accepting loans. 特别是, the Federal Reserve published several forms for both borrowers and lenders detailing, 除此之外, 应用程序指令, covenants and required certifications, a pro-forma bank participation agreement, 贷款服务协议, and additional Frequently Asked Questions. These documents are available on the Boston Federal Reserve’s Website.
While the new MSLP documents generally memorialize the program terms, 条件, and required attestations outlined in the facility term sheets previously released by the Federal Reserve on April 30, there are several additions and clarifications. Some of the more notable areas the potential borrowers should be aware of are highlighted below.
的意图 & 比较靠谱的赌博软件 COVID-19 Task Force provided an introduction to the Main Street Lending program, in addition to tackling the PPP Loan Forgiveness provision. 查看网络研讨会以了解更多信息.
冠状病毒后的生活是什么? 浏览PPP宽恕 & Intro To the Main Street Lending Program
Lack of Adequate Credit Elsewhere
5月27日th guidance from the Federal Reserve elaborates on a requirement for earlier CARES Act Title IV loans that the borrower attest that they have investigated other options for credit on the open market. According to the Federal Reserve, this attestation can be made by borrowers who, after their review of liquidity options, have determined that other sources of credit, such as a small business or private commercial loans, are inadequate due to characteristics like amount, 价格, or terms of credit available during the current circumstances. Borrowers are not required to demonstrate that applications for credit had been denied by other lenders or otherwise document that the amount, 价格, or terms of credit available elsewhere are inadequate.
Determination of Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
While the Federal Reserve had previously announced that adjusted EBITDA would be a metric used to determine maximum loan size, there was uncertainty regarding how EBITDA would be calculated under these loan facilities. 根据最新的指引, the methodology a lender requires a borrower to use when calculating its adjusted 2019 EBITDA must be a methodology the lender previously required to be used for adjusting EBITDA when extending credit to the borrower or to similarly situated borrowers on or before April 24, 2020. For the Main Street Expanded Loan Facility (“MSELF”) eligible loans, the methodology a lender requires a borrower to use when calculating its adjusted 2019 EBITDA must be the methodology the lender previously required when originating or amending the underlying loan on or before April 24, 2020.
Mary Beth Koester presented a detailed webinar touching on the impact COVID-19 will have on the value of your business. 现在按需观看网络研讨会.
冠状病毒后的生活是什么? 对企业估值的影响 & Opportunities For Succession Planning
关系规则
Further clarification has been provided by the Federal Reserve regarding how affiliation rules apply to the Main Street Loan facilities. The affiliation rules applicable for the MSLP are those referenced in 13 CFR 121.301(f), which are the same used to determine eligibility for the SBA’s Paycheck Protection Program. Affiliation rules apply for the determination of eligibility (i.e., 2019 consolidated revenue of less than or equal to $5 billion or employee headcount of no more than 15,000)及贷款金额上限. Maximum loan amounts available under each facility apply collectively to the borrower and its affiliates. 换句话说, while more than one affiliate may qualify for an MSLP facility, the aggregate loan values issued to each affiliate cannot exceed the maximum amounts of $25 million (Main Street New and Priority Laon Facilities) and $200 million (MSELF).
财务报告
All three Main Street facilities will contain a financial reporting covenant requiring the borrower to report certain financial and debt information quarterly and annually to the lender.
违约的后果
Breaches of loan certifications or covenants will trigger immediate demand for repayment of the full outstanding 主要 and accrued interest.
It is important to note that the MSLP is continuously evolving so it is important to monitor the 美联储网站 for the latest program updates and details.
To learn more about the MSLP and financial resources available to business owners, 看看我们专门的“Financial Resources For Employers Impacted By COVID-19”部分。 & 比较靠谱的赌博软件’ COVID-19 Resource Center.
联系人: Doug Houser，注册会计师，MBA, CEPA， 主要 & 建筑署署长 & 房地产服务