Coronavirus Lending Impacts
What loan options are available in today's environment? Learn about PPP & Main Street Lending Program.
Loan Options amid COVID-19
The impacts of COVID-19 are potentially catastrophic for many businesses that extinguish their liquidity or violate the terms of their existing lending agreements. Further, these disruptions are likely to persist for some time. As the economic damage related to the coronavirus pandemic continues to unfold, many small and medium size businesses are considering new financing options to weather the economic storm. By taking advantage of loan options as soon as possible, companies will be able to restructure their balance sheets in a manner that can benefit the business well after the crisis has abated.
Which Loan Program is Right for My Organization?
On Friday March 27, 2020 the President signed into law The Coronavirus Aid, Relief, and Economic Security (CARES) Act. Provisions under the legislation allocated stimulus funding for two key programs to assist small and medium sized businesses access debt capital: Main Street Lending Program & Paycheck Protection Program.
While CEOs and CFOs are dealing with organizational changes due to the pandemic, it can often be hard to determine which loan programs are viable for the company. Even worse, they lack the time it takes to properly qualify lenders, compare loan terms and negotiate loan agreements. Below offers a quick guide to evaluate the loan options available through the recently passed CARES Act. Even better, Cerebro can help companies prepare their PPP loan applications and evaluate other loan options to help middle market companies recapitalize.
How Do the New COVID-19 Loan Programs Compare?
EIDL Program: https://www.benefits.gov/benefit/1504
Main Street Lending: https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200409a7.pdf
Curious how much debt your company can receive in today’s environment?
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