On April 30 the Federal Reserve announced new details (the “April 30 Release”) regarding the expanded scope of its Main Street Lending Program, including the addition of a third facility allowing loans with a higher leverage ratio and the expansion of eligibility for all three facilities to borrowers with fewer than 15,000 employees or less than $5 billion in 2019 revenue (versus 10,000 employees or $2.5 billion in revenue in the prior releases).  

The release also included updated term sheets for each of the three facilities as well as a frequently asked questions document (the “FAQ”).   The updated term sheets and FAQ address some of the open questions relating to the program, but leave additional terms as well as a start date as open items to be addressed in future releases—therefore potential borrowers and lenders can review and prepare but may not yet begin the full application, underwriting or documentation processes.  Although additional details and start date remain outstanding, the Federal Reserve did not solicit a further round of comments in the April 30 Release.   

This alert includes a basic summary of the Main Street Lending Program as well as significant changes in the April 30 Release—if you have any questions, please reach out to the Polsinelli lawyers listed or your regular Polsinelli contact.  Polsinelli will be releasing a detailed summary of all published terms of the Main Street Lending Program in due course.

Click here to read the alert.