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COVID-19 Loan & Grant Programs - Main Street

Main Street Lending Programs

Update: The Main Street Lending Program took effect on June 15, 2020. The program was further expanded on July 17, 2020 to include loans for nonprofits. Read more about these new loans.

Operated through the Federal Reserve, with funds appropriated through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Main Street New Loan Facility (MSNLF), Main Street Priority Loan Facility (MSPLF), and Main Street Expanded Loan Facility (MSELF) programs will provide up to $600 billion in loans to eligible borrowers. All loans require borrower certifications stating that the eligible borrower has reason to believe that it has the ability to meet its financial obligations for at least three months following the date of the loan, and does not anticipate filing for bankruptcy during that time.

Eligibility

  • You are a business that was established prior to March 13, 2020 with no more than 15,000 employees or less than $5 billion in 2019 annual revenues
  • To be considered an eligible borrower, the business must be created or organized in the U.S. or under the laws of the U.S. with significant operations and most employees in the U.S.
  • If a business participates in the MSNLF, it is not eligible to also participate in the MSPLF or MSELF and vice versa; nor the Primary Market Corporate Credit Facility
  • Has not received support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the Coronavirus Aid, Relief, and Economic Security (CARES) Act)

Terms

Main Street New Loan Facility (MSNLF)

  • 5-year maturity
  • Principal payment will be deferred for two years, interest payments will be deferred for one year, and unpaid interest will be capitalized
  • Adjustable rate of the London Inter-bank Offered Rate (LIBOR) 1 or 3 month plus 300 basis points
  • Principal amortization of 15% at end of year three, 15% at end of your four, and a balloon payment of 70% at maturity (end of year five).
  • Minimum loan size of $250,000 and maximum loan that is the lesser of $35 million OR an amount that, when added to the eligible borrower’s existing outstanding and undrawn available debt does not exceed four times the eligible borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization
  • Loan is not contractually subordinated, at the time of origination or at any point during the loan, in terms of priority to any of the Eligible Borrower's other loans or debt instruments
  • Prepayment permitted without penalty

Main Street Priority Loan Facility (MSPLF)

  • 5-year maturity
  • Principal payments will be deffered for two years, interest payments will be deferred for one year, and unpaid interest will be capitalized
  • Adjustable rate of the London Inter-bank Offered Rate (LIBOR) 1 or 3 month plus 300 basis points
  • Principle amortization of 15% at ends years three and four, plus a balloon payment of 70% at maturity at end of year five
  • Minimum loan size of $250,000 and maximum loan that is the lesser of $50 million, OR an amount that, when added to the eligible borrower’s existing outstanding and undrawn available debt does not exceed six times the eligible borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization
  • At the time of loan origination as well as all times the eligible loan is outstanding, the loan is senior to or pari passu with, in terms of priority and security, the eligible borrower’s other loans or debt instruments, aside from mortgage debt
  • Prepayment permitted without penalty

Main Street Expanded Loan Facility (MSELF)

  • 5-year maturity
  • Principle payments will be deferred for two years, interest payments will be deferred for one year, and unpaid interest will be capitalized
  • Adjustable rate of the London Inter-bank Offered Rate (LIBOR) 1 or 3 month plus 300 basis points
  • Principle amortization of 15% at ends of years three and four, plus a balloon payment of 70% at maturity at end of year five
  • Minimum loan size of $10 million and maximum loan that is the lesser of $300 million, OR an amount that, when added to the eligible borrower’s existing outstanding and undrawn available debt does not exceed six times the eligible borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization
  • At the time of upsizing, as well as all times the upsized tranche is outstanding, the upsized tranche is senior to or pari passu with, in terms of priority and security, the eligible borrower’s other loans or debt instruments, aside from mortgage debt
  • Prepayment permitted without penalty

Questions

For general inquiries regarding the Main Street Lending Program, please email mslp@bos.frb.org.

Loan Program Quick Guide

This at-a-glance resource will help you determine the type of financial relief that is right for your practice.

Legal and Financial Disclaimer: The information on this page is meant to serve as an educational summary of federal loan and grant programs related to COVID-19. It does not constitute or substitute legal or financial advice. Interested parties should continue to consult their legal and financial professionals.

Note about AAOS Help and Services: Unfortunately, the Academy is unable to help with individual applications or paperwork required for obtaining relief funds. For related questions or comments about the programs, please email the Office of Government Relations at dc@aaos.org.