Exploring the Main Street Lending Program for Businesses
May 14, 2020
Many businesses have suffered significant hardships, with some financial loss leading to bankruptcies and even closures, due to the COVID-19 pandemic. While traditional lenders are hesitant to loan money at this time, the government is spearheading loan program options in an effort to provide economic stability and maintain access to credit.
In this episode of Deal Talk with 7MA, Elliot Davis’ associates Ryan Loveless and Josh White explore the intricacies of the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP). The discussion includes an analysis of the benefits to businesses looking to pursue growth today and after the crisis has abated. They discuss the specifics of the Federal Reserves’ MSLP (03:29) and compare it to the PPP, the program run by Small Business Administration and the Treasury Department. (07:07) There are three types of loans available, which vary in terms of the amount you can borrow, amortization terms, and transaction fees. (14:29)
Ryan and Josh go on to discuss what you can expect when applying for the MSLP, including qualifications, terms (13:52), and how to determine whether your business is eligible for the program. (24:13) They also address the do’s and don’ts of allocating resources from the loan (27:19) and how to prepare your business. (29:51)
When considering the MSLP, it’s critical that you first consult with a trusted advisor, accountant, or consultant who can guide you through the process. It’s also important to start conversations with multiple banks to discern which presents the most suitable opportunity. (40:07)
About Elliott Davis:
Elliott Davis LLC is a leading business solutions firm offering a full spectrum of services in the areas of tax, comprehensive assurance, and consulting services to diverse businesses, organizations, and individuals. The firm, which has been providing innovative solutions since its founding in 1920, leverages a network of nearly 800 forward-thinking professionals in major domestic markets and alliance resources across the globe. Visit elliottdavis.com for more information.
For more information from Elliott Davis regarding COVID-19 , please visit their COVID-19 Resource Page.
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Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.