COVID-19 Update and Resources

May 6, 2020

The Main Street Lending Program to Support Middle Market Businesses

The Federal Reserve on Thursday took additional actions to provide?loans to support the economy.?ACG CEO Tom Bohn spoke with Keith Durkin, a partner with Baker & Hostetler LLP about the Federal Reserve’s announcement of $75 billion in loans available to middle-market companies through the Main Street Business Lending Program. Companies excluded from the U.S. Small Business Administration’s Paycheck Protection Program will be eligible for the Main Street Lending Program.

?

The Federal Reserve on Thursday took additional actions to provide?loans to support the economy.

The Federal Reserve created the Main Street Business Lending Program which is targeted for middle market companies.?According to its press?release, The Federal Reserve's role is guided by its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. The Federal Reserve will ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans through the Main Street Lending Program. The Department of the Treasury, using funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide $75 billion in equity to the facility.

The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. Banks will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans. Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Firms that have taken advantage of the PPP may also take out Main Street loans.

Read more about it in Middle Market Growth:?Fed Reinforces Stimulus with Its Main Street Business Lending Program

COVID-19 Related Resources:?

Paycheck Protection Program FAQs (May 5, 2020)?

Main Street Lending Program?(April 30, 2020)?

ACG Comment Letter Main Street Lending Program?(April 16, 2020)?

Read the New Federal Reserve Loans to Mid-Size Businesses brief by Baker & Hostetler, LLP?brief (April 9, 2020)?

Read the Federal Reserve Term Sheet Main Street New Loan Facility Press Release?(April 9, 2020)

Read the Federal Reserve Term Sheet Main Street Expanded Loan Facility?(April 9, 2020)

ACG Letter to Senate President Mitch McConnell and House Speaker Nancy Pelosi (April 9, 2020)

SBA Paycheck Protection Program?

ACG Letter to U.S. Treasury Secretary Mnuchin and SBA Administrator Carranza?(March 31, 2020)

Treasury Encourages Businesses Impacted by COVID-19 to Use Employee Retention Credit?

Payroll Tax Credits

Paycheck Protection Program Fact Sheet

SBA Assistance

GrowthTV Interview with U.S. Representative Steven Horsford (D-NV)

Middle Market Growth News

ACG Events?

ACG's?commitment to measure and mitigate risk at its events for our members and attendees is steadfast. ACG is an organization built on live networking and your health is paramount to our success. We continue to follow national directives from the Centers for Disease Control and Prevention (CDC), the Canadian Public Health Services and World Health Organization (WHO) response to and guidance about the coronavirus disease 2019 (COVID-19).

InterGrowth 2020 has been canceled. To learn more, click here.
Many chapter events have transitioned from live to virtual events.
Click Here for Chapter Events Updates

For a full list of events please visit the event page.

We understand the critical networking role that ACG plays for middle market M&A deal-makers. We are grateful for your presence in the ACG vibrant business community.?Please contact membership@acg.org?or your local chapter with additional questions.