G.21. Are there any prohibitions on the use of proceeds of a Main Street loan?
The Program is intended to help small and medium-sized companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize. However, Program loans may not be used for: •the benefit of an Eligible Borrower’s foreign parents, affiliates, or subsidiaries (see question E.9); or to refinance or accelerate payment of existing debt, except (i) at the time of originationof an MSPLF Loan if the debt was owed to a different, unaffiliated lender (see question C.4), or (ii) under the limited exception for mandatory and due debt and interest payments after the origination of the Main Street loan (see question H.3). In addition, under the Program an Eligible Borrower may not use any funds (including the proceeds of a Main Street loan) during the term of the loan (and, in some cases, for 12 months after the Main Street loan is repaid) for the following reasons: •paying dividends, distributing capital, repurchasing equity, or paying compensation over specified thresholds, except as provided under section 2.D of the MSNLF, MSPLF, or MSELF Borrower Certifications and Covenants or these FAQs (see question H.2); or •repaying other debt ahead of schedule (see section 5.A of the MSNLF, MSPLF, or MSELFBorrower Certifications and Covenants and question H.3).