November 25, 2020
The Main Street Lending Program (MSLP) is scheduled to terminate on Dec. 31, 2020. The Federal Reserve recently issued additional guidance in anticipation of winding down the program.
McGuireWoods’ previous client alerts (from May 1, May 29, June 12, June 18, July 6, July 17, July 31, Sept. 22 and Nov. 12) summarize the term sheets, guidance and form documents issued and revised by the Federal Reserve for the MSLP. As noted in those previous client alerts, the Federal Reserve established the MSLP to support lending to small and medium-sized businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. Under the MSLP, the Federal Reserve Bank of Boston (FRB Boston) formed MS Facilities LLC as a special purpose vehicle (Main Street SPV) to purchase up to $600 billion of participations in eligible loans. The MSLP currently consists of five facilities: the Main Street New Loan Facility, the Main Street Priority Loan Facility, the Main Street Expanded Loan Facility, the Nonprofit Organization New Loan Facility and the Nonprofit Organization Expanded Loan Facility.
On Nov. 25, 2020, FRB Boston released updated guidance in anticipation of the MSLP’s scheduled Dec. 31, 2020, termination date:
McGuireWoods has published additional thought leadership analyzing how companies across industries can address crucial business and legal issues related to COVID-19.