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Main Street Lending Program FAQs

Frequently Asked Questions - Main Street Lending Program

What is the Main Street Lending Program?
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Congress passed in April, the program was created to help businesses access credit during this period of economic uncertainty. The access to additional credit is intended to help businesses maintain operations and payroll until economic conditions stabilize.
How long will the main Street Lending Program be available?
The program will be available until September 30, 2020.
What is the differences between the Main Street Lending Program and the Payroll Protection Program?
Similar to the Payroll Protection Program (PPP), The Main Street Lending program was created to assist companies that have been affected by the COVID-19 pandemic.
The PPP was implemented by the Small Business Administration (SBA) to provide short-term support for the payroll and operations of small businesses through government-guaranteed loans, and included a forgiveness option.
The Main Street Lending Program was designed by The Federal Reserve for longer-term  support for small and medium-sized businesses that were unable to access a PPP loan or require additional financial support after receiving a PPP loan.
What businesses are eligible to apply?
To qualify, businesses must have fewer than 15,000 employees or a 2019 annual revenue less than $5 billion.
Businesses must have been created or organized in the United States, with significant operations in the United States and a majority of employees based in the United States.
What businesses are ineligible?
There are certain types of businesses that are deemed ineligible to participate, per SBA guidance. Click here for a list of ineligible business types for SBA loans.
Are non-profit organizations eligible to borrow under the program?
No. However, the federal government has indicated this might change when it evaluates the eligibility criteria and loan eligibility metrics of the program.
I received a PPP loan, do I qualify for the Main Street Lending Program?
Yes. Main Street Lending Program loans are available to those who received a PPP loan.
How can I apply?
City National bank is here to help. Speak to your relationship manager, call XXX-XXX-XXXX, or visit
Are Main Street Lending Program loans forgivable? 
No. Main Street loans are full-recourse loans and are not forgivable. The principal amount of a Main Street loan cannot be reduced through loan forgiveness.
Can the proceeds form a Main Street loan be used to payoff or restructure existing debt?
No. Businesses cannot use the funds to refinance existing debt, repay other debt of equal or lower priority or ask for committed lines to be canceled or reduced. This program is designed to deliver incremental capital to business impacted by COVID-19.  Borrowers must commit to make reasonable efforts to maintain payroll and retain workers and will be subject to CARES Act restrictions on executive compensation, stock repurchases, and dividends.
Can the proceeds be used to pay scheduled interest and principal payments on existing debt?
Yes, the proceeds may be used for mandatory payments on scheduled debt.
What are the available loan amounts?
The amount of the secured or unsecured loan can be a minimum of $500,000 and a maximum based on the particular loan facility:
  • Main Street New Loan Facility (MSNLF): Up to $25 million or an amount that, when added to the borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the borrower’s 2019 EBITDA.
  • Main Street Priority Loan Facility (MSPLF): Up to $25 million or an amount that, when added to the borrower’s existing outstanding and committed but undrawn debt, does not exceed six times the borrower’s 2019 EBITDA.
  • Main Street Expanded Loan Facility (MSELF):  Up to $200 million, or an amount that, when added to the borrower’s existing debt, does not exceed six times the borrower’s 2019 EBITDA.
To view the term sheets published by the Federal Reserve for the MSNLF, MSPLF and MSELF click here.
What is EBITDA?
EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and measures the business’ overall financial performance.

What are the repayment terms of the loans?
Businesses will have 4 years to repay, with the first year principal and interest payments deferred. Unpaid interest will be capitalized.