COVID-19: The Main Street Lending Program – The Federal Reserve’s Revised Proposed Terms
On April 30, the Federal Reserve Board announced it is expanding the scope and eligibility for the Main Street Lending Program in order to further help credit flow to small and medium-sized businesses that were in sound financial condition before the COVID-19 pandemic.
Please join Mayer Brown partners Fred Fisher, Jeff Taft, and Adam Wolk and associate Logan Payne as they discuss these new changes, which include:
- A new third loan option for “priority loans,” with increased risk sharing by lenders
- An expansion of the pool of businesses eligible to borrow and lenders eligible to lend (though in both cases, with important exclusions)
- Leverage measures being based on “adjusted EBITDA”
- And a step back from SOFR to LIBOR
Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.
