The government recently introduced a new loan program called the Main Street Extended Loan Facility (MSELF). This new loan program provides up to $2.3 trillion in loans to larger businesses in need. All US banks are eligible to originate this loan. With the SBA PPP Loan gaining so much traction within the first few days of the roll-out, the MSELF Loan can be a good option for larger companies who can take on a bit more debt. Before you decide to apply, there are a few criteria and features that you should know.
To apply, you must be able to prove that your company has faced financial hardship due to COVID-19. Your business should have up to 10,000 employees, and have made $2.5 billion in revenue in 2019. These plus a few other qualifications will make you eligible to apply for the MSELF loan.
This loan is a 4-year loan, with one year of amortized principal and interest deferred. The minimum amount you can request is $1 million, while the maximum amount is $25 million or any amount that does not exceed four times the borrowers 2019 earnings before interest, taxes, depreciation, and amortization, when it is added to the existing outstanding and committed but undrawn debt. Lastly, there is no prepayment penalty associated.
This loan can be incredibly beneficial to larger businesses that can take on at least $1 million in debt. For more information on COVID-19 resources, visit our COVID-19 resource page.