Treasury, Federal Reserve Release Final Main Street Facility Term Sheets

Highlights

• The U.S. Department of the Treasury and Federal Reserve released updated term sheets for their Main Street Lending Program (MSLP), designed to provide up to $600 billion in loans for small and midsize businesses, including revised term sheets for the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF) and a term sheet for a new Main Street Priority Loan Facility (MSPLF).
• The release reflects the edits the Treasury Department and Federal Reserve made in response to a public comment period.
• The updated term sheets address many concerns, but also impose new guidance and limitations that could mute effectiveness of programs.

As previously reported, in response to the coronavirus (COVID-19) pandemic, the Federal Reserve and the U.S. Department of the Treasury unveiled two lending programs – the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF) – to provide credit to