Author Topic: Main Street Lending Program  (Read 3198 times)

Offline Am

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Re: Main Street Lending Program
« Reply #20 on: July 16, 2020, 11:04:00 PM »
My understanding is that MSNLF and MSPLF loans can be unsecured, and that only MSELF Upsized Tranches must be secured. Of course finding a bank to do that might still be an issue.
I'm wondering if the Fed will revise the terms to give the banks less leeway as to what must be required seeing that there's so little enthusiasm.
The fed is not requiring the loan to be secured in order for them to purchase 95% but the bank is still allowed to require collateral, because they are taking 5% of the risk.

That was the way I understood it.

Offline Am

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Re: Main Street Lending Program
« Reply #21 on: July 16, 2020, 11:05:35 PM »
Here's a link to the Feds list of approved banks:
https://www.bostonfed.org/supervision-and-regulation/supervision/special-facilities/main-street-lending-program/information-for-borrowers.aspx#map
They all jumped to get approved but most have no interest in actually participating and issuing loans.

Offline helpusout

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Re: Main Street Lending Program
« Reply #22 on: July 17, 2020, 12:23:54 AM »
They all jumped to get approved but most have no interest in actually participating and issuing loans.

i reached out to a few. the paperwork they require for 5% stake is ridiculous

Offline cgr

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Re: Main Street Lending Program
« Reply #23 on: July 17, 2020, 12:48:34 AM »
The fed is not requiring the loan to be secured in order for them to purchase 95% but the bank is still allowed to require collateral, because they are taking 5% of the risk.

That was the way I understood it.
Agreed- it is that way.
Was just pointing out that it's not mandated federally.

Offline cgr

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Re: Main Street Lending Program
« Reply #24 on: July 28, 2020, 09:59:56 AM »
The Fed has extended the Main Street Lending Program to run through 12/31/20 (was originally scheduled to close on 09/30/20)
https://home.treasury.gov/news/press-releases/sm1069

Offline AsherO

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Re: Main Street Lending Program
« Reply #25 on: August 03, 2020, 11:15:14 AM »
The Fed has extended the Main Street Lending Program to run through 12/31/20 (was originally scheduled to close on 09/30/20)
https://home.treasury.gov/news/press-releases/sm1069

How much was lent through this program so far? My understanding is that it was a major flop compared to PPP/EIDL
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Offline cgr

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Re: Main Street Lending Program
« Reply #26 on: August 03, 2020, 12:05:40 PM »
How much was lent through this program so far? My understanding is that it was a major flop compared to PPP/EIDL
According to the WSJ they had made one loan as of 07/20, and according to the Chicago Tribune they made none as of 07/30.
Either way major flop is correct.

https://www.wsj.com/articles/main-street-program-is-too-stingy-to-banks-and-borrowers-11595284266

https://www.chicagotribune.com/business/ct-biz-fed-main-street-lending-ppp-loan-20200630-fxwe4k5e7zbx7jgd6rr6cxwqcq-story.html

Offline AsherO

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Re: Main Street Lending Program
« Reply #27 on: August 03, 2020, 12:06:33 PM »
According to the WSJ they had made one loan as of 07/20, and according to the Chicago Tribune they made none as of 07/30.
Either way major flop is correct.

https://www.wsj.com/articles/main-street-program-is-too-stingy-to-banks-and-borrowers-11595284266

https://www.chicagotribune.com/business/ct-biz-fed-main-street-lending-ppp-loan-20200630-fxwe4k5e7zbx7jgd6rr6cxwqcq-story.html

Extending a program that isn't actually lending any money is a non-starter...
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Offline cgr

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Re: Main Street Lending Program
« Reply #28 on: August 03, 2020, 12:07:19 PM »
My hope is that this will spur the Fed to offer more favorable terms, and force banks to follow set approval guidelines instead of whatever they decide.

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Offline cgr

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Re: Main Street Lending Program
« Reply #30 on: November 01, 2020, 03:58:39 PM »
The Fed has eased some of the loan rules such as lowering the minimum loan threshold to $100,000, reduced fees for loans of less than $250k, and relaxed guidance on how borrowers account for outstanding PPP loans.

No changes to the rule that banks may impose their own requirements in addition to Fed requirements, so collateral is still an issue.

Detailed writeup in my signature block below.

Offline helpusout

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Re: Main Street Lending Program
« Reply #31 on: November 02, 2020, 12:52:21 PM »
The Fed has eased some of the loan rules such as lowering the minimum loan threshold to $100,000, reduced fees for loans of less than $250k, and relaxed guidance on how borrowers account for outstanding PPP loans.

No changes to the rule that banks may impose their own requirements in addition to Fed requirements, so collateral is still an issue.

Detailed writeup in my signature block below.

Thank you for the update. How does one apply for this?

Offline cgr

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Re: Main Street Lending Program
« Reply #32 on: November 02, 2020, 01:11:44 PM »
Thank you for the update. How does one apply for this?

You need to find a bank to work with. Easiest would be to go with your business bank that you already have a relationship with, if they're an approved MSLP lender.

Offline helpusout

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Re: Main Street Lending Program
« Reply #33 on: November 02, 2020, 01:20:36 PM »
You need to find a bank to work with. Easiest would be to go with your business bank that you already have a relationship with, if they're an approved MSLP lender.
I spoke to a number of banks back when the program was initiated and none were too eager.
We bank with chase, I wonder if they do it.

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