ECONOMIC SUPPORT

ASSISTANCE AVAILABLE TO BUSINESSES

During difficult times, we are here to help our clients navigate uncharted waters with relevant and timely information, even if it’s not directly insurance related. To that end, we want to make sure you know about provisions passed by Congress the second half of March to assist business owners facing cash flow challenges from the coronavirus outbreak. For small businesses (those with 500 or fewer employees) that are coping with business challenges from the coronavirus, these include loans and refundable tax credits to provide substantial cash flow assistance.

Read more about small business loans and reimbursements available for paid leave here in our March 27, 2020 blog post.

INFORMATION ABOUT THE MAIN STREET LENDING PROGRAM AS AN EXPANSION OF THE CARES ACT RELIEF EFFORTS

Among the actions were the release of terms for new loans and the expansion of existing loans under the Main Street Lending Program. Encouraged in the $2 trillion relief package passed by Congress last month, the Program is designed to support small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies (i) employing up to 10,000 workers or (ii) with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year.
 
Eligible banks will be able to originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. The Main Street facilities will purchase up to $600 billion of loans.
 
Those looking to access these facilities should be aware of a number of important borrower eligibility criteria, features of the loans, and commitments and attestations borrowers will need to make.
 
The two-term sheets related to these programs can be found here:

• Main Street Expanded Loan Facility
• Main Street New Loan Facility