Main Street Lending Program

Originally published on May 4, 2020. Last updated as of February 19, 2021. The Main Street Lending Program terminated on January 8, 2021. This client alert describes the main terms, issues and open questions for each of the five separate loan facilities which were available to eligible businesses and nonprofits under the program, and an update regarding post-termination FAQs posted by the Boston Fed.   *              *              * Proskauer’s cross-disciplinary, cross-jurisdictional Coronavirus Response Team is focused on supporting and addressing client concerns.  We will continue to evaluate the CARES Act, related rules and regulations and any subsequent legislation to provide…
On April 9, 2020, the Federal Reserve announced additional programs under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide up to $2.3 trillion in loans and other investments to support the U.S. economy. These actions include: Supplying liquidity to financial institutions participating in the Small Business Administration’s Paycheck Protection Program (the “PPP”) (for more information on the PPP, see here); Expanding the size and scope of the Primary Market Corporate Credit Facility (the “PMCCF”), the Secondary Market Corporate Credit Facility, and Term Asset-Backed Securities Loan Facility, which will support up to $850 billion in…