The Federal Reserve Bank of Boston announced the opening of the Lender Registration portal for the Main Street Loan Program on June 15, 2020. Lenders can start the registration process at the program’s lender portal by creating a lender account. Program agreements are also available now.
At a speech given on June 19, 2020, Eric Rosengren, President of the Federal Reserve Bank of Boston, indicated that as of June 18, 2020, more than 200 financial institutions, large and small, had initiated registration to be lenders under the Main Street Program.
Lenders must submit two documents prior to participating in the Main Street Lending Programs: (1) the Main Street Lending Program Lender Registration Certification and Covenants and (2) the Lender Wire Instructions Direction.
The Fed has also posted the Main Street Program agreements that Lenders will use for each Main Street loan, including:
Lenders may use their preferred form of loan documents to evidence the Main Street loan financial terms, collateral security and other agreements and provisions binding on borrowers under the Main Street Loan Program.
The loan documentation should include LIBOR fallback language considering the five-year term of Main Street loans and the required assumption that LIBOR will not be available after December 2021. The Fed has not provided LIBOR fallback language and we do not expect that specific LIBOR transition provisions will be required in order to participate in Main Street loans.
Lender Next Steps:
For additional information on the Main Street Lending Program, visit the Foley Insights blog on the program.
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1 https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/msnlf-lender-transaction-specific-certifications-and-covenants.pdf; https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/msplf-lender-transaction-specific-certifications-and-covenants.pdf; https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/mself-lender-transaction-specific-certifications-and-covenants.pdf
2 https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/msnlf-borrower-certifications-and-covenants.pdf; https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/msplf-borrower-certifications-and-covenants.pdf; https://www.bostonfed.org/-/media/Documents/special-lending-facilities/mslp/legal/mself-borrower-certifications-and-covenants.pdf