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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:
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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