Main Street Lending Program

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Main Street Lending Program Overview


Borrower Certifications & Covenants

To participate in a Main Street Lending Program facility, the Eligible Borrower must provide M&T Bank required certifications and covenants in writing at the time the Loan is originated.

Eligible Borrower must commit to refrain from repaying other debt of equal or lower priority, with exception of mandatory principal and interest payments, unless the Eligible Borrower has repaid the Eligible Loan/upsized tranche in full.

Eligible Borrower may, at the time of origination of the Eligible Loan, refinance existing debt owed by the Eligible Borrower to a lender that is not the Eligible Lender.*

*Only applicable for Priority Loan Program borrowers.

Eligible Borrower must attest that it will not seek to cancel or reduce any of its outstanding lines of credit with M&T Bank or any other lender.

Each Eligible Borrower that participates in the Facility should make commercially reasonable efforts to maintain its payroll and retain its employees during the time the Eligible Loan/upsized tranche is outstanding.

Eligible Borrower must attest that it will follow compensation, stock repurchase, and capital distribution restrictions that apply to direct loan programs under section 4003(c)(3)(A)(ii) of the CARES Act, except that an S corporation or other tax pass-through entity that is an Eligible Borrower may make distributions to the extent reasonably required to cover its owners' tax obligations in respect of the entity's earnings. These restrictions are noted below:

  1. Until one year after the date the loan is no longer outstanding, the Eligible Borrower must comply with various compensations limitations. An officer or employee of the Eligible Borrower whose total compensation exceeded $425,000 in calendar year 2019 may not receive (i) total compensation from the Eligible Borrower during any 12-consecutive-month period exceeding the total compensation that individual received in calendar year 2019 or (ii) severance pay or other benefits upon termination of employment exceeding twice the total compensation that individual received in calendar year 2019. This limitation does not apply to employees whose compensation is determined through an existing collective bargaining agreement entered into prior to March 1, 2020.
  2. An officer or employee of the Eligible Borrower whose total compensation exceeded $3 million in calendar year 2019 may not receive total compensation from the Eligible Borrower during any 12-consecutive-month period in excess of the sum of $3 million plus 50% of the total compensation over $3 million the individual received in calendar year 2019.
  3. Until one year after the date the loan is no longer outstanding, an Eligible Borrower may not (i) repurchase equity securities of itself or its parent that were listed on a national exchange while the loan was outstanding, except as otherwise required pursuant to a contract in effect on March 27, 2020, or (ii) pay dividends or make other capital distributions on common stock.

Eligible Borrower will be required to certify that the entity is eligible to participate in the Facility, including in light of the conflicts of interest prohibition in section 4019(b) of the CARES Act.

Section 4019 of the CARES Act prohibits entities in which certain government officials (list here) and some of their immediate family members have a "controlling interest" from participating in certain government programs, including Main Street. Each participating entity, both Eligible Lenders and Eligible Borrowers, will be required to certify that the entity is not a "covered entity" as defined in section 4019 of the CARES Act.

Eligible Borrower must certify that it has a reasonable basis to believe that, as of the date of the origination of the Eligible Loan and after giving effect to such loan, it has the ability to meet its financial obligations for at least the next 90 days and does not expect to file for bankruptcy during that time period.

If the Board of Governors of the Federal Reserve System determines that the Eligible Borrower made a material misstatement in certifications, or materially breached covenants, M&T Bank will be notified to trigger a mandatory prepayment requirement under the Main Street Lending Program facility.

All Main Street Lending Program Loans are subject to satisfaction of eligibility requirements for the MSLP government program and underwriting and creditworthiness determination by M&T Bank in its sole discretion. M&T Bank is an Eligible Lender for the Main Street Lending Program.

Disclosures:

All loans and lines of credit are subject to credit approval. Additional terms and conditions may apply.

Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details.

The content of this page is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.

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