Ditchmen • NUCA of Florida Ditchmen - April 2020 | Page 23

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Federal Reserve Moves to Assist Larger Businesses
The Federal Reserve has unveiled its $600 billion Main Street lending effort for businesses
with up to 10,000 employees and up to $2.5 billion in 2019 annual revenue.
Here is what we know so far:
■ The loans will be made available, as has been the case with the Paycheck Protection
Program, through financial institutions, not directly from the government.
■ The minimum loan size is $1 million with a maximum of up to $150 million, depending on
the borrower’s current outstanding debt.
■ Amortization or principal and interest are deferred for one year.
■ The loans will have a four-year maturity, low adjustable rates, and prepayment can be
made without penalty.
■ The CARES Act restrictions regarding compensation, stock repurchase, and dividend are
applicable.
There are many other requirements and limitations that each business owner will need to
consider, and we are monitoring the rollout of this program. Please contact Kari Hebrank,
Carlton Fields, if you want further information on how this program may assist your
business.
APRIL 2020 • DITCHMEN
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