The Main Street Lending Program: A Viable Option for Equipment Distributors?-The Main Street Lending Program: A Viable Option for Equipment Distributors?

The Main Street Lending Program: A Viable Option for Equipment Distributors?

Video Transcription

Video Summary

The webinar discusses the Main Street Lending Program and its viability for distributors. The program is a traditional lending program where the Federal Reserve buys loans from banks. It is designed for companies that were unable to access the Paycheck Protection Program or need additional support. There are three loan facilities in the program: new loan, priority loan, and expanded loan. Each loan has different minimum and maximum loan sizes and repayment terms. The loans are not forgivable and collateral is not required, although it depends on the lender. The borrower must make a commitment not to use the loan to repay other loans or cancel lines of credit. Compensation, stock repurchase commitments, and conflicts of interest are also addressed. The application process will go through eligible lenders who will determine the specific information required. The program is open through the end of September and borrowers' names and borrowing amounts will be made public. The webinar also includes examples of dealers and their eligibility for the program. The Federal Reserve is expected to release further guidance on the program in the future.

Keywords

Main Street Lending Program

viability for distributors

traditional lending program

Federal Reserve

loan facilities

repayment terms

collateral

borrower commitment

eligible lenders