Aid to Midsize Businesses

Nonprofits and mid-sized businesses between 500 and 10,000 employees, or with revenues up to $2.5 billion, that are created or organized in the U.S. or under the laws of the U.S. with significant operations in and majority of its employees based in the U.S. Businesses must be in good financial standing.

The U.S. Treasury provided capital to the Federal Reserve to implement the Main Street Lending Programs that will provide financing to eligible lenders, which are U.S. insured depository institutions, U.S. bank holding companies and U.S. savings and loan holding companies. Eligible borrowers will apply through eligible lenders.

Known loan terms: The loans are 5-year loans and amortization of principal and interest is deferred for two years. The loans can be from $250,000 to $300 million and are determined depending on the situation of each applicant. More information can be found in the term sheets linked in the More Information Section.

Borrowers must commit from using the proceeds of these loans to repay other loan balances and must refrain from repaying other debt of equal or lower priority, with the exception of mandatory principal payments. Borrowers must also attest that financing is required due to COVID-19 and that the proceeds will reasonably allow borrowers to maintain payroll and retain employees during the term of the loan.

Borrowers must also meet the requirements set forth by the CARES Act: retaining at least 90% of current workforce until September 30, 2020, at full compensation and benefits; cannot engage in stock buybacks, unless contractually obligated, or pay dividends while the loan is outstanding; no outsourcing or offshoring for two years after completing repayment; and must remain neutral in any union organization effort and not breach a collective bargaining agreement for two years after repayment.

The Federal Reserve issued the terms of the Main Street Lending Programs on April 9th and is continuing to update and finalize the program. More information can be found at the Federal Reserve's website. Funding for loans to midsize businesses and nonprofits will be made available to banks and other lenders, as described above. Interested borrowers could also reach out to their bank for more information as it becomes available.

The Federal Reserve Bank of Boston will operate the Main Street Lending Program.  Interested borrowers should continue to visit this website as information is updated and the program is finalized. Visit here for more information from the Federal Reserve Bank of Boston.