April 21, 2020

Buyouts Quotes Chuck Morton on the Main Street Lending Program

2 min

On April 21, 2020, Chuck Morton was quoted in Buyouts regarding the Main Street Lending Program, which provides loans to small and medium-sized companies that were financially sound prior to the coronavirus pandemic. Many lower to middle-market companies that did not qualify for the $349 billion Paycheck Protection Program (PPP) turned to the Main Street Lending Program for support.

“The Paycheck Protection Program is about maintaining payroll, the Main Street Lending Program is about trying to preserve businesses,” Morton said.

According to the article, the program has two facilities, the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF), which have different eligibility requirements for businesses seeking aid.

The maximum loan size under the MSNLF is either less than $25 million or an amount that does not exceed four times the borrower’s 2019 EBITDA when included with “existing outstanding and committed but undrawn debt.” For MSELF, the maximum loan size is either less than $150 million, “30 percent of the eligible borrower’s existing outstanding and committed but undrawn bank debt,” or does not go past six times the borrower’s 2019 EBITDA.

“The Main Street Lending Program can provide much more debt,” Morton said. Loans must be at least $1 million, according to the term sheets. Borrowers are eligible for the loan if they have up to 10,000 employees or up to $2.5 billion in revenues from 2019.

Click here to access the article.