Thursday, May 14, 2020
By Dmitriy Berkovich, CPA
As a result of the Coronavirus Aid, Relief & Economic Security (CARES) Act, the Federal Reserve has created the Main Street Lending Program to provide a total of $600 billion in financing for small and medium-sized businesses. While the program’s start date has yet to be announced, here’s what you need to know to check eligibility and get ready to apply.
In order to be eligible for a Main Street Lending Program loan, a business must:
- Have been established before March 13, 2020;
- Not be an ineligible business according to Small Business Administration (SBA) regulations;
- Have no more than 15,000 employees or 2019 annual revenues of no more than $5 billion;
- Created in the United States or under the laws of the United States;
- Have significant operations and majority of its employees based in the United States.
To obtain a loan under the Program, an Eligible Borrower must submit an application, and any other documentation required by an Eligible Lender to such Eligible Lender. Eligible Borrowers should contact an Eligible Lender for more information on whether the Eligible Lender plans to participate in the Program and to request more information on the application process.
We are planning a webinar to cover specific details of this program – stay tuned for more details.
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