As the coronavirus continues and the post-COVID economy recovery is expected to be slow, many U.S. companies are still in need of capital to stay afloat. The COVID-19 relief program has provided financial support for all sizes of businesses, such as the Paycheck Protection Program. Celeri Network has helped many small business owners get their loans through the PPP. At the same time, the Federal Reserve offered the Main Street Lending Program, providing financial help for small and mid-sized companies. In this article, we’d like to give some information about the Main Street Lending program and share some loan options with business owners.
What is the Main Street Lending Program?
The Main Street Lending Program aims to support small and mid-sized companies that were financially sound before the pandemic. It will operate through three facilities: the Main Street New Loan Facility(MSNLF), the Main Street Priority Loan Facility(MSPLF), and the Main Street Expanded Loan Facility(MSELF). The Fed announced this $600 billion program on April 9 and expanded it on June 8 to make it accessible to more companies.
The expansion includes raising the maximum loan size, increasing the term of the loan to five years, and raising the Reserve Bank’s participation to 95%. The Fed also extended the repayment period for all loans by deferring principal payments for two years. At the same time, the minimum size loan decreased to $250,000. For more detailed information about the loan, please visit the Celeri Network’s Main Street Loan Program page.
Who is Eligible for the Main Street Lending Program?
To be qualified for the Main Street Lending Program, companies need to fulfill the following requirements:
- must be established before March 13, 2020;
- is not a type of business ineligible to receive the Paycheck Protection Program;
- must have less than 15,000 employees or has an annual revenue of 2019 less than $5 billion;
- must be created and organized in the United States or under the laws of the United States with significant operations in and a majority of its employees based in the United States;
- only participate in one of the Main Street Lending facilities and does not in the Primary Market Corporate Credit Facility;
- has not received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020.
How to Apply for the Main Street Lending Program?
Small and mid-sized businesses interested in the Main Street Lending Program can reach out to traditional lenders and regular banks. There is a list of registered lenders in the Federal Reserve Bank of Boston website. After seeing the lenders, borrowers must submit an application and other documents to get the loan. If you don’t know how to connect with financial institutions, please contact Celeri Network. Our loan experts will help you out with this.
What Other Loans Mid-sized Businesses Can Apply Except for the MSLP Loan?
There are many other loan options available for small and mid-sized companies, such as term loans. Term Loans are suitable for companies that want to finance significant business investments and tend to have a fixed repayment term and fixed interest rate, which allows for straightforward budgeting. Another alternative is the line of credit. A line of credit’s benefit is that borrowers only use the amount they need and can avoid paying interest on significant unnecessary loan amounts. If a conventional loan is not your preference, there is always invoice financing as a viable alternative. This type of business loan allows business owners to get paid immediately for the products they invoiced. In this way, you can leverage cash flow to create new opportunities and increase profit.
Celeri Network can provide these lending solutions and takes a very hands-on approach to ensure the best loan to meet your business requirements and ultimate goals. To learn more information about them, please visit Celeri Network business loan page. Do not hesitate to contact us. We are here to help you apply for the best fit financing in minutes.