How to apply for Main Street Lending Program

The Main Street Lending Program will help mid-size companies in America receive funds to maintain operations and keep workers employed. Learn how to apply now through Cerebro. 

Due to overwhelming demand, Cerebro Capital is prioritizing borrowers who have at least $1MM in 2019 EBITDA.

Main Street Lending Program

On Friday March 27, 2020 the President signed into law The Coronavirus Aid, Relief, and Economic Security (CARES) Act. Provisions under the legislation allocated $600 billion to help medium-sized business maintain operations and keep workers employed amid the pandemic and economic downturn. This program provides regulated banks a funding facility to extend unsecured loans that are not federally guaranteed, but instead are sold to the Federal Reserve via a 95% participation. Let Cerebro help you get the money to keep your doors open and employees paid during this uncertain time. 

Who can we help?

Due to overwhelming demand, Cerebro Capital is offering two levels of support, based on company size as measured by 2019 EBITDA: 

For borrowers with over $1MM in 2019 EBITDA, seeking $2MM or more in MSLP loans, Cerebro will support you through the entire lending process, from qualification through funding. 

For borrowers with $300K to $1MM in 2019 EBITDA, Cerebro will help package your loan financials and refer you to national small business lending partners. 

Seeking $2MM or more

If your company $2MM+ in existing debt on the balance sheet, or you are seeking to receive at least $2MM in MSLP loans, and have at least $1MM in 2019 EBITDA, we can help.

What makes Cerebro Capital different?

Cerebro Capital’s platform uses data-driven algorithms, direct access to over 650 lenders, and loan experts to increase the certainty of funding. Cerebro can help ensure you receive the COVID-19 funds that your company is promised under the CARES Act. 

Access Large Network of Lenders

We can help you submit the application to lenders who specifically offer the MSLP loans as well as additional loan options that may be available in conjunction with the Main Street Loan Facility.

Capital Markets Team & Expert Guidance

Have a team of loan experts review your loan application, craft a deal narrative, and expedite loan closing. Cerebro's team ensures you are receiving the highest loan amount quickly.

Workflow Software & Data Rooms

Software tools help you organize application requirements, diligence lists, and lender Q&A. Online access provides visibility on lender's status to funding.

Why consider other banks?

Savvy CFOs will run a competitive RFP process for their MSLP loans in order to have the highest probability of getting access. Early messaging from various banks indicates that the MSLP loan process will not be standardized and will resemble a standard credit request approval process which is unique to each bank. The current program as announced on April 9, 2020 is limited. It is expected that the program will run out of funding before all eligible companies receive their loans.  

Why consider other banks?

Loan Sizes

Banks may vary in their aggressiveness toward this new program and some might not offer the full loan amounts.

Additional Requests

Some banks may require new borrowers to switch their treasury business. And some may have more onerous diligence processes than others.

Availability

Some banks may prioritize customers with larger loan amounts. Companies with no loans or loans from non-bank lenders might miss out on access to the program before it runs out.

Savvy CFOs will run a competitive RFP process for their MSLP loans in order to have the highest probability of getting access. Early messaging from various banks indicates that the MSLP loan process will not be standardized and will resemble a standard credit request approval process which is unique to each bank. The current program as announced on April 9, 2020 is limited. It is expected that the program will run out of funding before all eligible companies receive their loans.  

Ready to start the process?

1) Complete Loan Assessment

Start your preliminary loan application process online with a simple 15 minute form. Your company profile will be cross-referenced against data from over 650 lenders.

2) Loan Consultation Call

Based on your loan assessment data, Cerebro's expert team will answer questions and provide specifics on probability of closing success, cost of capital, likely loan structures and closing timelines.

3) Invite Matched Lenders

Data-driven matching provides list of top competitive lenders. Borrower can select from their lender relationships and new lenders in Cerebro's network, including commercial banks and non-bank lenders.

4) Launch Competitive RFP Process

Debt placement platform includes integrated data rooms and workflow tools to run a streamlined competitive bid process to get to the best terms with the least hassle.

Main Street Lending FAQs

Eligible Borrowers are businesses with up to 15,000 employees or fewer or 2019 annual revenue of $5 billion or less  in 2019. Additionally, Borrowers must be a business that is created or organized in the United States or under the laws of the United States with significant operations in and a majority of its employees based in the United States. Certain businesses are deemed ineligible to participate please refer to 13 CFR 120.110(b)-(j), (m)-(s), as modified and clarified by SBA regulations for purposes of the PPP on or before April 24, 2020. Such modifications and clarifications include the SBA’s recent interim final rules available at 85 Fed. Reg. 2081185 Fed. Reg. 21747, and 85 Fed. Reg. 23450.

The program is subject to both maximum and minimum loan amounts. The minimum loan is $250K and the max is $35MM, capped at a threshold of 4x EBITDA. Exceptions are available for certain borrowers where they can access up to $300MM, capped at a threshold of 6x EBITDA. 

No, loans are not forgivable but payments of principal and interest are deferred for up to 2 years. Unpaid interest will be capitalized.

Yes, borrowers must attest follow compensation, stock repurchase, and capital distribution restrictions that apply to direct loan programs under section 4003(c)(3)(A)(ii) of the CARES Act.

 

Yes. A Business that receives a loan through the SBA’s Payroll Protection Program can be an Eligible Borrower under Main Street if it meets the Eligible Borrower criteria.

Cerebro Capital is working with borrowers who are seeking $2MM to $35MM in loans through the Main Street Lending Program. You can start the process by filling out a loan assessment

The June 8th update to the MSLP guidelines now allows Borrowers to refinance up to $50 million in existing debt through the Priority Loan Facility. This will be very attractive to borrowers who have expensive debt or debt that is maturing within the next 12 months.

Yes, proceeds may be used for mandatory principal repayments on scheduled debt.

 No, Eligible Lenders are limited to U.S. federally-insured depository institutions (including banks, savings associations, and credit unions), U.S. branches or agencies of foreign banks, U.S. bank holding companies, U.S. savings and loan holding companies, U.S. intermediate holding companies of foreign banking organizations, or any U.S. subsidiary of any of the foregoing are eligible to participate in the Program. At this time, non-bank financial institutions are not considered Eligible Lenders for purposes of the Program. However, the Federal Reserve is considering options to expand the list of Eligible Lenders in the future. (PLEASE CONTACT CEREBRO TO SEE HOW WE CAN HELP)

EBITDA adjustments are at the discretion at the lender but the methodology used to calculate adjusted 2019 EBITDA for a Borrower must be a methodology it previously used for adjusting EBITDA when extending credit to the Borrower (if the Borrower is an existing client) or to similarly situated borrowers on or before April 24, 2020.

 

Under the program, New Loans and Priority Loans may be issued on a secured or unsecured basis. However, New Loans cannot be subject to contractual subordination to existing debt. For expanded loans, any collateral that secures the underlying loan must secure the upsized tranche on a pro rata basis.

Cerebro Capital is working with hundreds of bank lenders, many of whom have registered for the Main Street Lending Program. One of the advantages of working with Cerebro Capital is that you won’t have to spend time trying to identify participating lenders. While we are not sharing our specific lender list, the Federal Reserve has posted lender information here

NOTE: None of the information contained herein is intended to be legal, tax, or investment advice, nor should it be relied on as such. You should consult your own legal, tax investment or other advisors, at both the onset of any transaction and on an ongoing basis to determine the laws and analyses applicable to your specific circumstance. Cerebro Capital, Inc. hereby disclaims all warranties associated with this information. The information contained in this communication may be obtained from a variety of sources and may be subject to change and Cerebro does not accept responsibility for, or guarantee it to be, accurate, timely, secure, error-free, malware-free or virus-free. Cerebro disclaims any and all liability for the information and disclaims all express or implied warranties, including without limitation, any warranties for information or errors contained in, or omissions from, the information, and the implied warranties of merchantability and fitness for a particular purpose. Cerebro and its employees and officers shall not be liable for any loss or liability suffered by you resulting from the provision to you of such information or your use or reliance in any way on such information. Such information is being provided on an “AS-IS, WHERE-IS” basis and “WITH ALL FAULTS.”