SBA Paycheck Protection Program

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Paycheck Protection Program Flexibility Act (PPPFA) was signed into law on June 5 extending the time allowed for businesses to spend PPP loan proceeds and providing new forgiveness measures.

Federal Reserve Main Street Lending Program

The Board of Governors of the Federal Reserve System announced a $600 billion Main Street Lending program to support small and mid-sized businesses.

  • For companies with up to 10,000 employees and $2.5 billion in revenue
  • Available to borrowers that may have also received PPP loans

  • Establishes two facilities: "New Loan" and "Expanded Loan"

    o  New loan sizes from $1 million up to $25 million

    o  Expanded loan sizes from $1 million up to $150 million

  • Loan terms:

    o  4-year unsecured term loans

    o  SOFR + 250-400 basis points

    o  No prepayment penalty

  • Restrictions on compensation, stock repurchases, and distribution apply

  • Many "direct loan" CARES Act restrictions on borrowers do not apply, including those that would have related to labor and offshoring

  • Loan applications will be managed through the borrower's bank

How Your Business Can Access Financial Assistance Due to COVID-19 Pandemic

(April 7, 2020)

Additional Resources:

[eGuide] Access 'The Title Operator's Guide to Implementing ALTA Best Practices' from Qualia.