To encourage greater participation in the Main Street Lending Program, the Federal Reserve today announced several actions it has taken to make MSLP loans available to more businesses. The Fed lowered the minimum loan size for three Main Street Lending facilities available to for-profit and nonprofit borrowers from $250,000 to $100,000, and adjusted fees to “encourage the provision of these smaller loans.”
Additionally, the agency issued a set of frequently asked questions that clarify that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the MSLP. The amount of the loan for which the borrower has applied for forgiveness may be excluded from the “existing outstanding and undrawn available debt” calculation, unless the PPP lender or SBA determines it is ineligible for forgiveness, the Fed said.
For borrowers who have not yet applied for PPP forgiveness, the Fed will permit the exclusion of “the amount of its PPP loan that its principal executive officer has a reasonable, good-faith basis to believe will be forgiven in accordance with applicable PPP requirements.”