Main Street Lending Program – Lessons Learned

07.24.20

As part of the CARES Act the Federal Reserve Bank of Boston has established a special purpose vehicle (SPV) that will purchase a 95% participation in certain qualifying term loans originated by financial institutions. The terms of the loans have been written about elsewhere so we won’t reiterate them here (but would be happy to discuss them with you if you have questions). We recently helped Starion Bank with loan documents for a Main Street Priority Loan that the SPV purchased. It was the SPV’s first purchase in the country. Here are some lessons for those considering making a loan under the Main Street Lending Program umbrella:

04.29.20

On April 28, 2020, the Small Business Administration (“SBA”) released an interim final rule providing guidance to lenders on loan disbursements under the PPP. The interim final rule provides that from this point on, lenders must disburse PPP loans a one-time full disbursement within 10 calendar days of loan approval.

Kirsten Spira | 04.08.20

Today, April 8, 2020, the U.S. Treasury Department released an updated FAQ that addresses questions that lenders have regarding documenting, closing, and funding loans under the Paycheck Protection Program.