Florida Businesses – Please see the following report from The Greater Gainesville Chamber Of Commerce regarding the Federal Reserve’s Main Street Lending Program.
While this series regularly quotes from (and attributes the sources of) relevant third-party articles, in this rare instance, the following is a ‘verbatim’ copy of a portion of the Greater Gainesville Chamber of Commerce’s May 28, 2020 e-newsletter’s piece concerning the Federal Reserve’s Main Street Lending Program. After reviewing the following, if appropriate to your company, please consider acting on it promptly. It will be helpful to involve your attorneys and accountants in the process.
The Federal Reserve is offering a new program that may help your business called the Main Street Lending Program.
The Main Street Lending Program is designed to help credit flow to small and medium-sized businesses that were in good financial condition but now need loans to help until they have recovered from, or adapted to, the impacts of the pandemic. The availability of additional credit is intended to help companies maintain their operations and payroll until conditions improve.
How it Works
Loans originated under the program have several features that will help businesses facing challenges. The program offers 4-year loans, with floating rates, and principal and interest payments deferred during the first year to assist businesses facing temporary cash flow interruptions. The loans range in size from $500,000 to $200 million – a wide range that may support a broad set of employers.
It is important to note that Main Street Lending differs from other programs because the issued loans must be repaid, and require both the borrower and lender to be eligible to participate in the program.
To get started, businesses can review the program parameters prior to approaching a lender, and visit the borrower’s page for additional information. Lenders interested in the program can start at the lender’s page, where operational information will be posted as it becomes available.
There are three free upcoming opportunities to learn more. These opportunities are being offered by the Federal Reserve of Boston, but they are open to businesses from any location. Reserve your spot in one of them below:
- Business/borrower webinar (presentation & Q&A) – Fri., May 29
- Business/borrower drop-in call (Q&A) – Weds. June 3
- Lender Ask the Fed webinar (presentation & Q&A) – Thurs. June 4
(With gratitude to the Greater Gainesville Chamber of Commerce..)
For information about Bogin, Munns & Munns’ own response to Coronavirus readiness.
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.