The Federal Reserve’s Main Street Lending Program

The highly anticipated Main Street Lending Program (the “Program”) is now available to provide business loans to eligible small and medium-size companies through the COVID-19 pandemic, and we are here to help.

What It Is:

The Program is designed to facilitate lending to small and medium-size businesses that were in sound financial condition before the onset of the COVID-19 pandemic, to help maintain their operations and payroll until conditions normalize.

By providing additional lending capacity, the Program aims to enable as many sound businesses as possible to retain operational capacity to support a quick economic recovery.

Loans originated under the Program have several features that will help businesses facing challenges:

Loans ranging from $250,000 to $50,000,000 (typical limit set by Banc of California but may be higher up to federal designated loan limits, with Banc of California’s approval);

Upfront fees of up to 2%* with an adjustable interest rate of 1 month LIBOR + 3%;

5-year term, with 1 year of deferred interest and 2 years of deferred principal payments; AND
Banc of California will remain your primary point of contact for the loan and all operating accounts and deposits.

Eligible companies will have the following attributes:

  • Be established prior to March 13, 2020;
  • Have 15,000 employees or fewer, or $5 billion or less in annual revenues as of 2019 (in each case, together with affiliates);
  • Have not received specific support pursuant to Title IV, Subtitle A of the CARES Act, relating to emergency relief to distressed industries, including airlines and businesses important to maintaining national security;
  • Participate in only one of the three facilities under the Program and do not participate in the Primary Market Corporate Credit Facility (PPP recipients are eligible); AND
  • Not be an Ineligible Business as modified and clarified by SBA regulations on or before April 24, 2020.


What It Isn’t:

The Main Street Lending Program loans are not grants and cannot be forgiven. The loans are underwritten and approved by eligible lenders and the federal government (Banc of California retains 5% of each loan and the federal government will hold the remaining 95% as a participation in the loan).

To Get Started:

Contact your Banc of California Relationship Manager today at 855-917-2330 or complete the lead form and we will contact you within 24 business hours.

Visit the Federal Reserve’s website for the latest program details and up-to-date term sheets.

* Fees for New Loan Facility between $250K – $35M is 2%; Fees for Priority Loan Facility between $250K -$50M is 2%; and Fees for Expanded Loan Facility between $10M – $300M is 1.5%.