Executive Summary
The Federal Reserve’s Main Street Lending Program (MSLP) has the potential to inject hundreds of billions of dollars into the economy to help borrowers and lenders meet their business needs in support of CARES Act goals.
Attractive Loan Structure for Borrowers
- 5-year term
- Pricing of Libor +300 (about 3.25% today)
- Deferred interest for first full year
- No principal payments for years 1 and 2; 15% at end of year 3; 15% end of year 4; balloon end of year 5
- Fully prepayable at par