Notes to Know: The Main Street Lending Program

Updated: Aug 13, 2020

"If I'd have had more time, I'd have written a shorter letter" ~Blaise Pascal

This Note was excerpted from a presentation by Ami Kassar of Mutifunding, Inc. A recording of the presentation can be found here.

As we have discussed in prior notes, one of the principals of surviving a crisis as an entrepreneur is to have a “Fortress Balance Sheet.” Excess cash and liquidity can help your company through all kinds of challenges like those presented by the current COVID-19 pandemic. While the initial lending program, including PPP lending, has been largely exhausted, another, lesser-known program, the “Main Street Lending Program,” was recently finalized and is now in effect. While this program targets a much narrower band of applicants, many of you may find value in exploring this option. Here, we’ve tried to summarize some of the key points.

First and foremost, as with most things today, the program is still being defined and key questions about implementation remain. The summary below is our best judgment about what we know at this time. We encourage you to check with your attorneys, CPAs, and financial advisors for additional insights.

The gist:

  • MSLP is not an entitlement program. These are loans, and they must be paid back.

  • If your business has been badly hit by COVID-19, your best chance for an MSLP loan will be your current banking relationships.

  • If you are looking to use the loan to grow, more banks will be open to you, though plan on moving your banking relationships to the provider bank.

  • The program was live as of July 21 and is currently set to expire on September 30. Thus, if you are interested, you should move quickly.

  • $600B has been reserved for the program, so far.



  • Your business must have been established prior to March 13, 2020

  • Your business must have less than 15,000 employees and less than $5B in revenue

  • Your business must have been created or organized in the United States with significant operations and a majority of the employees in the U.S. (there are some allowances for affiliates of foreign companies…consult your lender)

  • Most for-profit entity types are allowed

  • Developers and landlords, as well as certain other unique businesses, are NOT eligible

New loans:

  • Are either a secured or unsecured loan

  • 5-year maturity

  • Principal payments deferred for two years, and interest payments deferred for one year (unpaid interest will be capitalized)

  • Rates based on 1 or 3 month LIBOR plus 3%

  • Prepayments are permitted without penalty

  • Loans are available in amounts from $250K-$50M. (Due to the complexity of the application process, Ami suggested not to apply if your loan need was less than $1M)

  • Loans are generally limited to four times (for certain loans, six times) 2019 EBITDA minus existing debt.

  • Fees are 1-2%

There is an expanded facility with limits from $10M-$300M and details on these are available from a lender.

It is important to note that if you have an existing lender, they must be willing to share their rights with the new lender.

As with any government pram, there is a myriad of additional requirements and restrictions which are beyond the scope of this note.

If this might be of interest, feel free to contact your banking relationship.

You can consult the Federal Reserve website at

You can also contact Ami at

Make it a great day!

The information contained within is the view and opinion of the author as of the date it was written, and not necessarily of Cascade Financial Management, Inc. Such views are subject to change without notice. Cascade has no duty or obligation to update the information contained herein.

This is for educational purposes only and should not be used for any other purpose. It is not intended as planning or tax advice for any individual or entity. It does not constitute and should not be construed as an offering of advice or an offer to sell, or a solicitation to buy any services or related financial instruments or advice of any kind. Your tax and financial situation are unique and you should not take any action or make any investment decision without first discussing your particular situation with your CPA, tax, or legal advisor.

Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Cascade believes the sources from where this information has been obtained are reliable, however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.

Any distribution, use, or copying of this information by anyone other than the intended recipient is unauthorized.

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