Do you want to know what exactly the main street lending program is? Well, you have come to the right place. The MSLP (Main Street Lending Program) is explained as the government participation which is intended to help all the business owners through low cost loans. All the loan requirements, terms and conditions, and other essential factors are originated and underwritten by the bank itself. As a result, they then sell ninety five percent of the interest to the US Treasury. However, this is where the bank also holds about five percent of the credit risk. Basically, it is one of the responses of the federal government to the latest COVID 19 pandemic. It intends to help all the companies that have been impacted.
Offering support during the pandemic
The main aim of the main street loan program is to offer working capital. Yes, you are reading this right. Both small and medium size businesses who are trying their level best to cope up with the pandemic have limited funding flexibility. Then will require some other funding source in case they have drawn all their lines of credit. Main street loan programs offer such companies a method to take a long term debt but at a less rate which in return gives them sufficient flexibility to navigate through the COVID 19 pandemic.
Want to understand the concept in a better way? Take into account a cafe, a bar, or a hotel which has been closed for some time because of the pandemic. All of these firms have experienced a tough time. Now that the lockdown has been uplifted, all of them do not have enough capital when it comes to the inventory, paying the staff, operations, and other things. This is where main street loan programs come handy. They offer them with sufficient capital infusion that comes with flexibility.
What are the eligibility requirements?
All the business owners and managers can apply for the main street loan program. Nevertheless, it is essential to adhere to certain eligibility requirements. Below mentioned are them. Take a look.
- The business should be an established US company before March 13, 2020.
- The business must have less than 15,000.
- The revenue of the business must be less than $5 billion in the year 2019.
The Final Thoughts
These are some of the factors you need to consider when it comes to opting for the main loan street program. Like you get in touch with the commercial mortgage lenders while applying for a loan for your new house, similarly you need to contact the professionals here too. Why? Because these people hold immense skills, experience, and knowledge in the industry. For a fact they know exactly what their clients require. They will keep all the financial requirements in mind and will help you make an informed decision. Hence, get in touch with the reliable professionals and you are good to go.