Published June 3 2020 – The Federal Reserve recognizes that the spread of COVID-19 has harmed communities and substantially disrupted economic activity in many sectors of the economy. In general, the availability of credit has contracted for small and medium-sized businesses while, at the same time, the disruptions to economic activity have heightened the need for such companies to obtain financing. Small and medium-sized businesses are integral to the U.S. economy and create jobs for a large share of the U.S. workforce.
The Main Street Lending Program is designed to provide support to small and medium-sized businesses and their employees across the United States during the current period of financial strain by supporting the provision of credit to such businesses. The availability of additional credit is intended to help companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize.
The federally backed loan program is being positioned to launch in early June. The long-awaited Main Street Lending Program has loan limits from $500,000 to $200 million.
We understand that you may have questions and the interest for more information. Presently, we are able to share the Frequently Asked Questions (FAQs) from the Federal Reserve website, which is one of the only available documents. The FAQ highlight and identify many specific circumstances that may or may not apply to your business.
We are here to help you navigate the complex issue of capital and liquidity. For more information and background on the Main Street Lending Program please visit our previous blog.
As always feel free to contact The Dopkins Transaction Advisory Specialists and our Financial Advisory Service Team. They are here to assist you in accessing liquidity and how to respond to changed business circumstances in light of COVID-19 while navigating the terms and conditions of the emergency loan programs identified above. Our team focuses on helping business owners and companies identify and secure short-term and long-term capital. Whether it’s domestic or foreign A/R, inventory, purchase order, construction, mezzanine financing, term loans and equity, our team has multiple sources of financing that will provide solutions to our clients.
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Dopkins & Company, LLP
Dopkins & Company, LLP, a locally owned certified public accounting and consulting firm offers comprehensive accounting, auditing and tax services, forensic accounting, as well as IT, wealth management consulting, internal audit support, and collateral examinations to privately held and public companies, not-for-profit organizations, and individuals. For more information, contact firstname.lastname@example.org.