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The government has implemented yet another business stimulus loan program called the Main Street Extended Loan Facility (MSELF). This loan program provides up to $2.3 trillion in loans to larger businesses in need. All US banks are eligible to originate this loan. Before you decide to apply, there are a few criteria and features that you should know.
In order to be eligible for an MSELF loan, you must meet the following criteria:
- You must be a business with up to 10,000 employees.
- You must have up to $2.5 billion in revenue for 2019.
- You must be an organized business in the United States, with most of your operations and employees based in the U.S.
- Both you and your business partners cannot participate in MSELF or Primary Market Corporate Credit Facility programs.
- You must ensure that the loan will be used to recover from financial strife caused by the COVID-19 outbreak. The funds should be used to make “reasonable efforts” to maintain payroll and keep employees while you are using the Main Street Loan.
In addition to these requirements, the Main Street Loan must be used for an unsecured loan term originated on or after April 8th, 2020. It is a 4-year loan, with one year of amortized principal and interest deferred. The minimum amount you can request is $1 million, while the maximum amount is $25 million or any amount that does not exceed four times the borrowers 2019 earnings before interest, taxes, depreciation, and amortization, when it is added to the existing outstanding and committed but undrawn debt. Lastly, there is no penalty if you decide to prepay.
This loan can be incredibly beneficial to larger businesses that are able to take on at least $1 million in debt.
At TGG, we have created a Main Street Loan Organizer Tool Kit to help you begin to create your loan application packet. Check to see if you’re eligible and we can help get you ready to apply!
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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