Main Street Lending Program

Recently, the Federal Reserve established the Main Street Lending Program, allotting $600 billion in loans for small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic or before March 13, 2020. The five-year loans are available to for-profit businesses of up to 15,000 employees OR those with 2019 revenues up to $5 billion. Principal payments will be deferred for two years and interest payments for one year.

The Main Street Lending Program features three loan facilities, each with specific minimum and maximum loan amount requirements.

EBITDA: Earnings before interest, tax, depreciation and amortization, generally

LIBOR: London Interbank Offer Rate, a common benchmark interest rate index

  • To be eligible to apply for a Main Street loan, a business must meet the following minimum criteria:
  • Created or organized in the United States or under the laws of the United States, with significant operations in and a majority of its employees based in the United States.
  • Established prior to March 13, 2020.
  • Hasn’t received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act).
  • May only participate in one of the Main Street facilities (MSNLF, MSPLF or MSELF) and must not also participate in the Primary Market Corporate Credit Facility (PMCCF).
  • Must be able to make all certifications and covenants required under the Program.
  • Any existing loan outstanding with the Eligible Lender as of December 31, 2019, must have had an internal risk rating (based on the Eligible Lender’s risk rating system) that was equivalent to a “pass.”

Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information on eligibility and conditions are available on the Federal Reserve’s Main Street Lending page.

Wood & Huston Bank is participating in the Main Street Lending Program. For more information, contact your established lender or you click here to have one of our lenders contact you.

Wood & Huston Bank and its subsidiaries are not tax or legal advisors. Please consult your tax or legal advisors for more information regarding your personal situation. We have no such agency relationships with CPAs, tax, or legal advisors.

Important Disclosure Information

The preceding is for discussion purposes only and does not constitute an offer or commitment by to enter into any arrangements. Any offer or obligation of Wood & Huston Bank to enter into such arrangements shall be (i) subject to credit approval, (ii) subject to a binding commitment from the Main Street Special Purpose Vehicle that it will purchase a participation, (iii) pursuant to definitive documentation executed by Wood & Huston Bank, the borrower, and any guarantors, such definitive documentation to be satisfactory in all respects to Wood & Huston Bank, and (iv) subject to the satisfaction of all conditions precedent set forth in such executed definitive documentation. 

Last Updated: July 17, 2020