Main Street Lending Program

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Main Street Lending Program Overview


Program Details: For-Profit Businesses

The table below summarizes certain, but not all, terms and conditions for each facility type. For more information, visit the FRB MSLP FAQs.

For-profit businesses may apply for one of three loan facilities under the Main Street Lending Program. The three types of loan facilities have somewhat different characteristics. The "New" and "Priority" facilities make new loans available to borrowers and the "Expanded" facility leverages an existing loan facility (term loan or revolving credit facility) to provide additional credit to borrowers. An Eligible Borrower may only participate in one of the MSLP facilities.

MSLP loan facilities are not grants and cannot be forgiven. All MSLP loan facilities are underwriiten and approved by M&T Bank. Businesses that otherwise meet the Eligible Borrower requirements may not be approved for a loan or may not receive the maximum allowable amount. The Federal Reserve Bank (FRB) has prescriptive minimum terms and conditions that should be carefully reviewed. FRB Term Sheets and MSLP requirements are subject to change. Additional terms and conditions may apply.

The Main Street Lending Program authorizes the SPV to purchase participations of Main Street Lending Program loans through December 31, 2020.

New Loans

A Main Street New Loan Facility (MSNLF or "New Loan") is available to Eligible Borrowers who apply for new debt with an Eligible Lender.

A New Loan may be secured or unsecured.

Term

5 years

Minimum Loan Size

$250,000

Maximum Loan Size

$35,000,000

Payment

Principal deferred for two-years. Interest payments deferred for one year. Unpaid interest is capitalized.

The New Loan will be amortized over the remaining term as follows:

End of Year 3 15%
End of Year 4 15%
End of Year 5 70%

Rate

Adjustable one-month LIBOR or three-month LIBOR plus 300 basis points

Fees

Reimbursement of the one-time Transaction Fee up to 100 basis points payable to the SPV will be collected at closing. A one-time origination fee up to 100 basis points will be collected at closing. Borrower will be responsible for fees related to underwriting such as appraisal and legal fees.

Prepayment

No prepayment penalty

Financial Reporting

Expansive and format-specific annual and quarterly financial reporting according to FRB Main Street Lending Program requirements.

Click here for financial reporting details.
Click here for FRB MSNLF Term Sheet

Priority Loans

A Main Street Priority Loan Facility (MSPLF or "Priority Loan") is available to Eligible Borrowers who apply for new debt with an Eligible Lender.

Existing debt that is held by another lender may be refinanced at the time the Priority Loan is originated.

A Priority Loan must be secured if, at the time of origination, the Eligible Borrower has any other secured loans or debt instruments, other than Mortgage Debt.

Term

5 years

Minimum Loan Size

$250,000

Maximum Loan Size

$50,000,000

Payment

Principal deferred for two-years. Interest payments deferred for one year. Unpaid interest is capitalized.

Priority Loan will be amortized over the remaining term as follows:

End of Year 3 15%
End of Year 4 15%
End of Year 5 70%

Rate

Adjustable one-month LIBOR or three-month LIBOR plus 300 basis points

Fees

Reimbursement of the one-time Transaction Fee up to 100 basis points payable to the SPV will be collected at closing. A one-time origination fee up to 100 basis points will be collected at closing. Borrower will be responsible for fees related to underwriting such as appraisal and legal fees.

Prepayment

No prepayment penalty

Financial Reporting

Expansive and format-specific annual and quarterly financial reporting according to FRB Main Street Lending Program requirements.

Click here for financial reporting details.
Click here for FRB MSPLF Term Sheet

Expanded Loans

A Main Street Expanded Loan Facility (MSELF or "Expanded Loan" ) is available to Eligible Borrowers who apply for an increase (new tranche) to an existing term loan or revolving credit facility that was originated on or before April 24, 2020, with an Eligible Lender. The existing term loan or revolving credit facility must have a remaining maturity of at least 18 months.

An Expanded Loan must be secured if, at the time of origination, the Eligible Borrower has any other secured Loans or Debt Instruments, other than Mortgage Debt.

Term

5 years

Minimum Loan Size

$10,000,000

Maximum Loan Size

$300,000,000

Payment

Principal deferred for two-years. Interest payments deferred for one year. Unpaid interest is capitalized.

The Expanded Loan will be amortized over the remaining term as follows:

End of Year 3 15%
End of Year 4 15%
End of Year 5 70%

Rate

Adjustable one-month LIBOR or three-month LIBOR plus 300 basis points

Fees

Reimbursement of the one-time Transaction Fee up to 75 basis points payable to the SPV will be collected at closing. A one-time origination fee up to 75 basis points will be collected at closing. Borrower will be responsible for fees related to underwriting such as appraisal and legal fees.

Consent fees may apply for any necessary amendments to existing loan documentation.

Prepayment

No prepayment penalty

Financial Reporting

Expansive and format-specific annual and quarterly financial reporting according to FRB Main Street Lending Program requirements.

Click here for financial reporting details.
Click here for FRB MSELF Term Sheet

Additional terms and conditions may apply.

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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