Main Street Lending Program

In response to the COVID-19 pandemic, the Federal Reserve established the Main Street Lending Program to support loans to small- and medium-sized businesses in good financial standing before March 13, 2020. The five-year loans are available to for-profit businesses of up to 15,000 employees OR those with 2019 revenues up to $5 billion. The program will stop accepting loans on December 31, 2020, unless the program is extended by the Federal Reserve Board and the Treasury. Principal payments will be deferred for two years and interest payments for one year.

The Main Street Lending Program features three loan facilities, each with specific minimum and maximum loan amount requirements.

New Loan Facility Priority Loan Facility Expanded Loan Facility
Term 5 years 5 years 5 years
Types of Loans Secured or unsecured term loans originated after April 24, 2020 Secured or unsecured term loans originated after April 24, 2020 Incremental term loan tranche1 to an existing term loan or revolving credit facility made by an eligible lender on or before April 24, 2020
Minimum Loan Size $250,000 $250,000 $10 million
Maximum Loan Size The lesser of $35 million or an amount that, when added to outstanding and undrawn available debt, does not exceed 4x the 2019 adjusted EBITDA The lesser of $50 million or an amount that, when added to outstanding and undrawn available debt, does not exceed 6x the 2019 adjusted EBITDA The lesser of $300 million or an amount that, when added to outstanding and undrawn available debt, does not exceed 6x the 2019 adjusted EBITDA

Synovus is participating in the Main Street Lending Program and currently accepting applications with single borrowers and additional guarantors. The Federal Reserve is unable to accept co-borrower applications at this time but expects to do so in the future. To be eligible to apply for a Main Street loan, a business must meet the following minimum criteria:

  • 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.
  • Established prior to March 13, 2020.
  • Hasn’t received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act).
  • May only participate in one of the Main Street facilities (MSNLF, MSPLF or MSELF) and must not also participate in the Primary Market Corporate Credit Facility (PMCCF).
  • Must be able to make all certifications and covenants required under the Program.
  • Any existing loan outstanding with the Eligible Lender as of December 31, 2019, must have had an internal risk rating (based on the Eligible Lender’s risk rating system) that was equivalent to a “pass.”

Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information on eligibility and conditions are available on the Federal Reserve’s Main Street Lending page.

Synovus will also participate in the Nonprofit Organization New Loan Facility (NONLF) and the Nonprofit Organization Expanded Loan Facility (NOELF) and are awaiting the Federal Reserve’s finalization of terms, as well as further guidance on co-borrowers. For more information, contact a Synovus Relationship Manager.

Important Disclosure Information

The preceding is for discussion purposes only and does not constitute an offer or commitment by Synovus Bank (Synovus) to enter into any arrangements. Any offer or obligation of Synovus to enter into such arrangements shall be (i) subject to credit approval of Synovus, (ii) subject to a binding commitment from the Main Street Special Purpose Vehicle that it will purchase a participation, (iii) pursuant to definitive documentation executed by Synovus, borrower, and any guarantors, such definitive documentation to be satisfactory in all respects to Synovus, and (iv) subject to the satisfaction of all conditions precedent set forth in such executed definitive documentation.

  1. Tranches are securities that can be split up into smaller pieces and subsequently sold to investors. (Source: Investopedia) Back