Recently this series reported on the Federal Reserve’s new Main Street Lending Program. To see that article please click here. This program is intended for small and medium sized businesses.
To address the needs of those businesses, and following public input, ‘The Fed’ has made changes to the program which include:
- Lowering the minimum loan size for certain loans to $250,000 from $500,000;
- Increasing the maximum loan size for all facilities;
- Increasing the term of each loan option to five years, from four years;
- Extending the repayment period for all loans by delaying principal payments for two years, rather than one; and
- Raising the Reserve Bank’s participation to 95% for all loans.
To see ‘The Fed’s’ full statement on the Main Street Lending Program’s updates (from which the above is quoted) please click here.
As noted by the Greater Gainesville Chamber of Commerce in its June 9, 2020 e-newsletter:
Businesses can go to any federally insured bank, credit union, savings association to apply. For eligibility criteria and a complete list of the types of institutions you can go to for a Main Street Loan click here.
As mentioned in several past articles, if a business is interested in pursuing a loan through the Main Street Lending Program, it should contact its lender, attorney, and accountant immediately.
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Note: Citations are given to the sources to respect the original authors’ copyrights.
– For more information, call Philip N. Kabler of the Gainesville, FL office of Bogin, Munns & Munns at 352.332.7688, where he practices in the areas of business, banking, real estate, and equine law. He has taught business and real estate law courses at the University of Florida Warrington College of Business Administration and Levin College of Law and is the President-Elect of the Eighth Judicial Circuit Bar Association.
NOTICE: The article above is not intended to serve as legal advice, and you should not rely on it as such. It is offered only as general information. You should consult with a duly licensed attorney regarding your Florida legal matter, as every situation is unique. Please know that merely reading this article, subscribing to this blog, or otherwise contacting Bogin, Munns & Munns does not establish an attorney-client relationship with our firm. Should you seek legal representation from Bogin, Munns & Munns, any such representation must first be agreed to by the firm and confirmed in a written agreement.